Wires

METALS-Nickel hits two-month low on smaller supply deficit, China worries

SINGAPORE, April 23 (Reuters) - Nickel prices fell on Tuesday, with new data showing a global nickel deficit had narrowed at the end of February, while investors worried that China may ease its stimulus measures.

Benchmark nickel dropped as much as 0.8 percent to $12,575 a tonne, its lowest intra-day level since Feb. 19, while Shanghai's most active nickel contract fell 1.4 percent to 98,270 yuan ($14,644.43) a tonne by 0210 GMT.

The global nickel market deficit narrowed to 2,000 tonnes in February from a revised deficit of 3,700 tonnes in January, and was much smaller than a 7,200-tonne deficit in the same month last year, the International Nickel Study Group said on Monday.

Sentiment was also weighed down by worries that China will ease up on stimulative policies after some signs of stabilization in its economy, pulling Chinese stocks down in their worst session in nearly four weeks on Monday.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange fell 0.6 percent to $6,441.50 a tonne, while Shanghai copper fell 0.5 percent to 49,140 yuan a tonne.

* Manufacturers in China facing trade barriers are deploying an array of moves to try to keep foreign customers - giving discounts, tapping tax breaks, trimming workforces and, occasionally, shifting production overseas to skirt tariffs.

* U.S. home sales fell more than expected in March as rising demand stoked by declining mortgage rates and slowing house price inflation continued to be frustrated by a lack of properties, especially in the market's lower-priced segment.

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MARKETS NEWS

* Asian shares were little changed, hovering not far from nine-month peaks hit last week, with concerns China may slow the pace of policy easing curbing the market's enthusiasm.

DATA/EVENTS

1400 US New Home Sales-Units March

1400 EU Consumer Confid. Flash April

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 = 6.7104 Chinese yuan renminbi)

(Reporting by Mai Nguyen; editing by Richard Pullin)