×

METALS-Shanghai nickel drops as investors take profits

(Adds comment, updates prices)

SYDNEY, Sept 11 (Reuters) - Chinese nickel futures declined sharply on Monday in the wake of a selloff last week in London contracts, pressured by profit-taking and worries over the outlook for Chinese demand.

"The (Shanghai) price was so high that it put pressure on demand," said Celia Wang, a nickel analyst at Grandflow Resources in Shanghai. The contract last week hit its highest in around nine months.

"On the spot market, steel mills are not coming out to purchase (nickel) because the raw material price rose too high, too fast," Wang said.

"I heard that many investors thought it was hard for the price to go up any further and it needed some correction, which put the price down fast," Wang said.

* SHANGHAI NICKEL: The most-traded nickel contract on the Shanghai Futures Exchange closed 3.6 percent down at 91,230 yuan ($13,998.56) a tonne after trading close to 6-percent down on the day in the morning session. On Sept. 4, it touched its highest since late-December 2016 at 97,720 yuan.

* LONDON NICKEL: Three-month nickel on the London Metal Exchange was 0.8-percent higher at $11,672.50 a tonne by 0700 GMT after falling 4.7 percent on Friday.

* STEEL DOWN: Prices for steel rebar, an indicator of nickel demand, fell 1 percent.

* COPPER: LME three-month copper was mostly flat at $6,693 a tonne, following a 3 percent fall on Friday. Shanghai copper was off more than 1.6 percent.

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

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 = 6.5171 Chinese yuan renminbi)

(Reporting by James Regan; Additional reporting by Tom Daly in Beijing; Editing by Richard Pullin and Joseph Radford)