March 12, 2018 / 4:23 AM / 7 months ago

METALS-Shanghai aluminium marks lowest close in 14 mths ahead of smelter restarts

 (Recasts on China aluminium, updates prices)
    BEIJING, March 12 (Reuters) - Shanghai aluminium prices
recorded their lowest close in 14 months on Monday, three days
before winter output curbs on Chinese smelters are set to end
and amid fallout from looming U.S. tariffs on metal imports.
    "Concerns over the impact of a trade war instigated by the
U.S. tariffs on aluminium and steel continue to weigh on the
sector," ANZ wrote in a note.
    Aluminium smelters in 28 northern Chinese cities were told
to reduce output by at least 30 percent from Nov. 15 to March
15, although the actual volume cut was below expectations,
putting pressure on prices.
    There may only be a limited restart from March 15 as current
prices are not high enough for some smelters to break even,
industry sources say, but any extra supply will hit the market
at a time when Shanghai aluminium inventories are at a record
high.
   
    FUNDAMENTALS
    * SHFE ALUMINIUM: The most traded May aluminium contract on
the Shanghai Futures Exchange ended down 1 percent at
14,065 yuan ($2,223.33) a tonne, its lowest close since Jan. 10,
2017. On Friday, the metal touched a low of 14,020 yuan a tonne.
    * TARIFFS: The United States opened the way for more
exemptions from its steel and aluminum tariffs on Friday, after
pressure from allies and intense lobbying from lawmakers,
further diluting the measures just a day after they were
formally announced.     
    * SHFE NICKEL: The most traded July nickel contract
on the ShFE closed up 3.2 percent at 104,119 yuan a tonne, its
biggest daily jump since Jan. 25. It had opened up 4.3 percent
as it tracked Friday's surge in the LME price.
    * LME NICKEL: London nickel was trading down 0.8
percent by 0721 GMT, having leapt 4.5 percent on Friday after
LME data showed a 13 percent slide in on-warrant stocks.
    * COPPER: Three-month copper on the LME was down 0.5
percent at $6,930 a tonne, having closed up 1.9 percent in the
previous session. The most-traded May ShFE copper contract
 closed up 0.8 percent at 51,960 yuan a tonne.
    * COPPER: Workers in the largest union at Antofagasta PLC's
 Los Pelambres copper mine in Chile rejected an offer
for a new labour contract, paving the way for a strike, a union
source told Reuters on Friday.    
    * For the top stories in metals and other news, click       
 or
                
    MARKETS NEWS    
    * A relief rally swept across Asian share markets on Monday
after the latest U.S. jobs report managed to impress with its
strength while also easing fears of inflation and faster rate
hikes, a neat feat that whetted risk appetites globally.
    
       
        
    PRICES     
 BASE METALS PRICES                        0723 GMT
 Three month LME copper                        6929
 Most active ShFE copper                      51960
 Three month LME aluminium                   2111.5
 Most active ShFE aluminium                   14055
 Three month LME zinc                          3275
 Most active ShFE zinc                        24980
 Three month LME lead                          2377
 Most active ShFE lead                        18440
 Three month LME nickel                       13750
 Most active ShFE nickel                     104100
 Three month LME tin                          21405
 Most active ShFE tin                        146970
                                                   
 BASE METALS ARBITRAGE                             
 LME/SHFE COPPER              LMESHFCUc3     874.79
 LME/SHFE ALUMINIUM           LMESHFALc3   -1432.06
                                          
 LME/SHFE ZINC                LMESHFZNc3      416.4
 LME/SHFE LEAD                LMESHFPBc3      45.55
 LME/SHFE NICKEL              LMESHFNIc3    1248.09
                                          
 
($1 = 6.3261 Chinese yuan renminbi)

    
 (Reporting by Tom Daly; Editing by Vyas Mohan and Joseph
Radford)
  
 
 
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