January 19, 2018 / 7:49 AM / 4 months ago

METALS-Shanghai aluminium, lead climb on smog alerts

 (Adds change to Jiyuan alert, inventory data; updates prices)
    BEIJING, Jan 19 (Reuters) - Shanghai aluminium prices rose
on Friday, buoyed by the first acceleration in China's GDP
growth in seven years and by a pollution alert in a major
industrial province.
    The climb came even as the country's output of the metal on
Thursday posted a surprise jump for December.
    "GDP, industrial production and fixed asset investment all
recorded strong growth," ANZ wrote in a note on Friday about the
China data. "The (metals) sector was also supported by some
supply-side issues."
    Late on Thursday, the city of Zhengzhou, capital of the key
aluminium-smelting province of Henan, raised its alert for air
pollution to red, the highest level, effective from Friday. That
means tighter curbs on output of industrial products, including
metals. 
    A similar alert in the lead production hub of Jiyuan, also
in Henan, was downgraded to orange on Friday. It will last only
until Jan. 21 instead of the four days previously announced,
although the city said the strictest curbs would remain in place
until then.     
       
    FUNDAMENTALS
    * SHFE ALUMINIUM: The most-traded March aluminium contract
 on the Shanghai Futures Exchange (ShFE) closed up 1
percent at 14,765 yuan ($2,308.65) but posted a weekly drop of
2.3 percent.  
    * LME ALUMINIUM: Three-month aluminium on the London
Metal Exchange (LME) was up 0.9 percent at $2,261.50 a tonne by
0736 GMT, after ending up 2.2 percent in the previous session.

    * LEAD: Lead was the biggest gainer among base
metals on the ShFE, rising 1.8 percent to 19,570 yuan a tonne at
the close on the back of the Jiyuan alert.
    * CHINA: China's economy grew faster than expected in the
fourth quarter of 2017, as an export recovery helped the country
post its first annual acceleration in growth in seven years,
defying concerns that intensifying curbs on industry and credit
would hurt expansion.
    * ALUMINIUM: China's aluminium production rebounded in
December to its highest since June, reversing five months of
declines and lifting 2017 output to a record. 
    * SHFE STOCKS: Deliverable ShFE aluminium inventories grew
by 9,818 tonnes from a week earlier to a fresh record of 783,759
tonnes on Friday, according to ShFE data. Lead stocks, which
have been tighter, rose by 1,433 tonnes to 43,572 tonnes.      
    * COPPER: The most-traded March copper contract in Shanghai
 closed up 0.1 percent at 53,710 a yuan a tonne.
Three-month London copper rose 0.8 percent to $7,130.50
a tonne, building on Thursday's gain of 0.6 percent after a
force majeure in Mongolia.
    * MONGOLIA: The Oyu Tolgoi copper-gold mine in Mongolia's
southern Gobi Desert declared force majeure after protests by
Chinese coal haulers disrupted deliveries near the border, said
majority owner Turquoise Hill.
    * ZINC: Rising supplies of zinc over the next couple of
years are unlikely to replenish dwindling inventories to the
extent that the market stops fretting about shortages and
driving up prices towards the peaks seen in 2007.
    * NICKEL: The global nickel market deficit narrowed to 8,400
tonnes in November from 11,500 tonnes in the previous month, the
International Nickel Study Group said on Thursday.
    
    For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    *  Asia stocks shook off losses on Wall Street and edged up
to record highs on Friday following China's announcement of
faster-than-expected fourth quarter growth, while worries over a
possible U.S. government shutdown weighed on the dollar.

       
    
    PRICES    
    
 BASE METALS PRICES                         0736 GMT
 Three month LME copper                       7130.5
 Most active ShFE copper                       53710
 Three month LME aluminium                    2261.5
 Most active ShFE aluminium                    14765
 Three month LME zinc                         3400.5
 Most active ShFE zinc                         26095
 Three month LME lead                         2612.5
 Most active ShFE lead                         19570
 Three month LME nickel                        12361
 Most active ShFE nickel                       96830
 Three month LME tin                           20545
 Most active ShFE tin                         146000
                                                    
 BASE METALS ARBITRAGE                              
 LME/SHFE COPPER               LMESHFCUc3     557.21
 LME/SHFE ALUMINIUM            LMESHFALc3   -2017.15
                                           
 LME/SHFE ZINC                 LMESHFZNc3     409.37
 LME/SHFE LEAD                 LMESHFPBc3    -615.89
 LME/SHFE NICKEL               LMESHFNIc3    1995.77
                                           
 
($1 = 6.3955 Chinese yuan renminbi)

    
 (Reporting by Tom Daly; Editing by Joseph Radford)
  
 
 
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