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METALS-Nickel prices fall again amid supply glut worries

SYDNEY, June 1 (Reuters) - Nickel prices fell further on Thursday to hover around 11-month lows, dragged down by worries about oversupply and fears of tepid demand from steel mills in top metals consumer China.

"We're not seeing much that would put nickel back in positive territory," said a trader in Perth, speaking on condition of anonymity.

"On the supply side, it looks more will be coming out of the Philippines and Indonesia, which is not good for prices."

FUNDAMENTALS

* LME NICKEL: Benchmark nickel on the London Metal Exchange was trading 1.6-percent lower at $8,935 at 0124 GMT. Overnight, it hit its lowest since late June at $8,825.

* SHANGHAI NICKEL: Shanghai Futures Exchange nickel was trading down 0.74 percent, after dropping 3.4 percent in the previous session.

* PHILIPPINES: President Rodrigo Duterte this month appointed a former military man as the new environment minister after Congress dismissed his first choice, who had ordered the closure of more than half of the mines in the world's top nickel ore supplier.

* INDONESIA: The relaxation in January of Indonesia's ban on exporting unprocessed nickel ore - in place since the start of 2014 - has added to concerns over rising supply.

* LME COPPER: Three-month LME copper was up 0.17 percent at $5,691 a tonne, extending modest gains from the previous session.

* SHANGHAI COPPER: The most-traded ShFE copper contract was down 0.26 percent at 45,420 yuan ($6,670) a tonne.

* NICKEL STOCKS: High inventories at LME warehouses are also a negative for nickel prices, traders said. Stocks at more than 378,000 tonnes account for almost 20 percent of global consumption estimated at nearly 2 million tonnes this year.

* WARRANT HOLDINGS: Traders are watching large holdings of LME cash contracts and warrants of aluminum and nickel. <0#LME-WHC>

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MARKETS NEWS

* Asian stocks were mostly lower on Thursday following a subdued lead from Wall Street, while the dollar pulled up from near two-week lows and sterling languished under the weight of political fears one week before Britain's election.

DATA AHEAD (GMT)

0145 China Caixin manufacturing PMI final May 0600 Britain Nationwide house prices May 0750 France Markit manufacturing PMI May 0755 Germany Markit/BME manufacturing PMI May 0800 Euro zone Markit manufacturing PMI final May 1215 U.S. ADP national employment May 1230 U.S. Weekly jobless claims 1400 U.S. ISM manufacturing PMI May 1400 U.S. Construction spending Apr

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminum

Most active ShFE aluminum

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

ARBS ($1 = 6.8098 Chinese yuan renminbi)

(Reporting by James Regan; Editing by Joseph Radford)