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METALS-London copper, nickel buoyed on EV demand expectations

(Adds comment, details, updates prices) MELBOURNE, Nov 6 (Reuters) - London nickel and copper extended gains on Monday, supported by upbeat sentiment over potential demand from electric vehicles in the wake of last week's cheery London industry week. Goldman Sachs upgraded its nickel forecasts, but said prices were more likely to find nearby support from China's pollution crackdown given EV demand is set as a story for 2020 on. "We expect nickel prices to remain high over the next couple of months, on a supportive macroeconomic backdrop and market tightening driven by Chinese nickel pig iron (NPI) cuts in Shandong province during the winter heating season," it said a report. NPI is a low-grade composite of nickel. "Even though the EV wave poses significant upside risk to nickel demand, we think much of the growth is likely to take place after 2020 and the current stock level will be sufficient to cover the demand before then." Goldman upgraded its 3-month nickel view to $12,500 from $9,000, its 6-month view to $12,000 from $9,000 and its 12-month view to $11,000 from $9,000.

FUNDAMENTALS

* NICKEL: London Metal Exchange nickel prices were up 0.8 percent at $12,830 by 0155 GMT and not far off two-year highs struck last week above $13,000 a tonne. Shanghai nickel earlier hit its highest in a year, up 2.1 percent.

* LME COPPER: London copper rose 0.6 percent to $6,937 a tonne, paring losses from the previous session. Copper prices have climbed nearly 7 percent this quarter and are eyeing a sixth straight quarter of growth.

* SHFE COPPER: Shanghai Futures Exchange copper edged down 0.2 percent to 54,350 yuan ($8,190) a tonne.

* USD: The dollar drifted from the top of its recent range, relieving some headwinds for metals after climbing on bets that the Federal Reserve will raise interest rates again next month and tighten further into 2018.

* COPPER INVESTORS: Hedge funds and money managers reduced their net long position in COMEX copper contracts in the latest week.

* LME: The launch of new base metals trading platform NFEx could be pushed back from the first quarter of 2018 as potential users are still busy getting their systems ready for new European Union rules.

* ZINC: Officials in China's Xiamen seized over 1,400 tonnes of imported zinc waste recently, after launching a campaign against foreign waste harmful to the environment in March.

* US ECONOMY: The Republican tax bill unveiled last week in the U.S. Congress could disrupt the global supply chains of large, multinational companies by slapping a 20 percent tax on cross-border transactions they routinely make between related business units.

* COMING UP: Euro Zone Mkt Serv Final PMI Oct at 0900 GMT

0339 GMT

Three month LME copper 6933.5 Most active ShFE copper 54490 Three month LME aluminum 2181.5 Most active ShFE 16165

aluminum

Three month LME zinc 3228 Most active ShFE zinc 25915 Three month LME lead 2476.5 Most active ShFE lead 18780 Three month LME nickel 12825 Most active ShFE nickel 102810 Three month LME tin 19535 Most active ShFE tin 144350 LME/SHFE COPPER LMESHFCUc3 757.28 LME/SHFE ALUMINIUM LMESHFALc3 -676.25 LME/SHFE ZINC LMESHFZNc3 599.35 LME/SHFE LEAD LMESHFPBc3 -1026.26 LME/SHFE NICKEL LMESHFNIc3 2144.69

($1 = 6.6360 Chinese yuan)

(Reporting by Melanie Burton; Editing by Richard Pullin and Sunil Nair)