MELBOURNE, Nov 2 (Reuters) - Shanghai nickel soared 5 percent on Thursday after London nickel hit its highest in two years as expectations of new demand from electric vehicles drove bullish sentiment for the metal.
* NICKEL: Shanghai nickel rallied to its highest since late November 2016, tracking gains in London, where LME nickel had hit the highest in more than two years above $13,000 a tonne on Wednesday.
* EVS: Battery makers are increasingly turning to nickel to help power growing global electric car sales, but only half of the world's producers of the metal are likely to benefit, mining analysts and executives say.
* LME: London Metal Exchange copper was up 0.2 percent at $6,945 a tonne by 0240 GMT, after 1.3 percent gains on Wednesday. Other metals zinc, nickel, lead and aluminium slipped by around half a percent each, taking a breather after recent gains.
* SHFE: Shanghai Futures Exchange copper slipped by 0.1 percent. Shfe zinc and aluminium fell by around 1 percent each.
* US FACTORY: A measure of U.S. factory activity retreated from a 13-1/2-year high in October as some of the boost from hurricane-related supply disruptions faded, but continued to point to strengthening manufacturing conditions.
* NAFTA: The current state of talks to update the NAFTA trade pact is creating uncertainty among businesses and could hurt investments and growth, Rio Tinto Aluminium chief executive Alf Barrios said on Wednesday.
* POLLUTION: China needs to improve law enforcement and make polluters pay to treat billions of tonnes of rural, industrial and household waste, the country's top legislator said in a report to parliament late on Wednesday.
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* Asian shares advanced on Thursday after the U.S. Federal Reserve expressed optimism about the economy, virtually cementing the case for a year-end rate hike as investors awaited the formal nomination of the next head of the central bank.
BASE METALS PRICES 0243 GMT Three month LME copper 6943.5 Most active ShFE copper 54140 Three month LME aluminium 2173 Most active ShFE aluminium 16095 Three month LME zinc 3252.5 Most active ShFE zinc 25910 Three month LME lead 2467.5 Most active ShFE lead 18655 Three month LME nickel 12685 Most active ShFE nickel 100850 Three month LME tin 19485 Most active ShFE tin 144360
BASE METALS ARBITRAGE
LME/SHFE COPPER LMESHFCUc3 618.24 LME/SHFE ALUMINIUM LMESHFALc3 -485.2 LME/SHFE ZINC LMESHFZNc3 494.78 LME/SHFE LEAD LMESHFPBc3 -903.74 LME/SHFE NICKEL LMESHFNIc3 1869.08
(Reporting by Melanie Burton; Editing by Subhranshu Sahu)