November 3, 2017 / 5:07 AM / a year ago

METALS-London nickel rises, on course for 10 pct weekly gain

 (Updates London prices, adds Shanghai closing prices)
    BEIJING, Nov 3 (Reuters) - London nickel prices renewed
their advance on Friday, putting the metal on course for a gain
of nearly 10 percent this week and 27 percent year-to-date on
expectations of bullish demand from the electric vehicle (EV)
battery sector.
    Three-month London Metal Exchange nickel has climbed by over
$1,100 a tonne since Monday, marking its biggest two-day jump in
more than three years on Tuesday and Wednesday on positive
sentiment about the EV growth story at the LME Week meeting in
London, before slipping back 1.4 percent on Thursday. 
    "While we agree that the potential is significant, we
suspect the market has jumped the gun and a short-term pullback
could be in order," ANZ analyst Daniel Hynes wrote in a note on
    "In saying that, it will just be a consolidation as the
market is likely to remain tight even before the demand growth
from the EV sector kicks in," he added. Hynes estimated that
demand for nickel from EV batteries could rise fivefold by 2025.
    * LME NICKEL: London Metal Exchange three-month nickel
 was up 0.6 percent at $12,685 a tonne by 0723 GMT. The
contract hit its highest in more than two years at $13,030 a
tonne on Wednesday.  
    * SHFE NICKEL: The most-traded nickel contract on
the Shanghai Futures Exchange (Shfe) recovered from a dip in
early trade to finish up 0.3 percent to 101,320 yuan 
($15,304.44) a tonne, a fresh highest close since June 2015.
    * BHP: Global miner BHP said that its
Australian Nickel West operations, which it is retooling to meet
battery sector demand, are for sale at the right price.

    * COPPER: Copper was trading up 0.1 percent in
London after ending the previous session little changed, and
closed up 0.3 percent in Shanghai.
    * ALUMINIUM: Aluminium in London was up 0.1 percent,
with looming production curbs on Chinese smelters likely to come
back into focus next week as traders return from LME Week.
Shanghai aluminium closed down 0.1 percent.
    * ZINC/LEAD: Zinc was down 0.5 percent in London and
ended down 0.1 percent in Shanghai, while lead
climbed 0.4 percent on the LME but closed down 0.5 percent on
the Shfe.
    * ALUMINIUM DEMAND: Global demand for rolled aluminium
products is expected to remain strong next year thanks largely
to the automotive sector, leading producer Novelis          
said on Thursday.
    * PRIVATE EQUITY: North American institutional investors are
raising their exposure to metals and mining partly through
co-investments with private equity, industry sources at a mining
conference said this week.
    * SOVEREIGN RISK: Kazakh miner Kaz Minerals said the
government of Kyrgyzstan had suspended operations at its
Bozymchak gold and copper mine on Thursday for three months.

    * TANZANIA: Acacia Mining's top two executives have
resigned in the midst of talks between its parent company and
the Tanzanian government aimed at ending a long-running dispute
that has hit Acacia's operations.
    * MARKETS: Asian shares took a breather on Friday as
investors gave a guarded reception to Republican plans for
massive U.S. tax cuts, while welcoming the appointment of a
centrist at the helm of the Federal Reserve.
    * USD/US JOBS: The dollar held steady versus a basket of
currencies on Friday, as focus shifted to U.S. jobs data.

 BASE METALS PRICES                          0723 GMT
 Three month LME copper                          6933
 Most active ShFE copper                        54310
 Three month LME aluminium                       2173
 Most active ShFE aluminium                     16235
 Three month LME zinc                            3241
 Most active ShFE zinc                          25930
 Three month LME lead                          2453.5
 Most active ShFE lead                          18550
 Three month LME nickel                         12685
 Most active ShFE nickel                       101310
 Three month LME tin                            19585
 Most active ShFE tin                          143830
 BASE METALS ARBITRAGE                               
 LME/SHFE COPPER               LMESHFCUc3       726.8
 LME/SHFE ALUMINIUM            LMESHFALc3     -516.57
 LME/SHFE ZINC                 LMESHFZNc3      515.62
 LME/SHFE LEAD                 LMESHFPBc3    -1003.39
 LME/SHFE NICKEL               LMESHFNIc3     2015.64

($1 = 6.6203 Chinese yuan renminbi)

 (Reporting by Tom Daly; Editing by Richard Pullin and Amrutha
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