SINGAPORE, Oct 29 (Reuters) - Shanghai zinc prices hit a nearly six-week high on Tuesday, while London zinc prices were hovering around a four-month peak as deteriorating inventories sparked supply shortage concerns.
The most-traded zinc contract on the Shanghai Futures Exchange (ShFE) climbed as much as 1.4% to 19,225 yuan ($2,721.51) a tonne, its highest since Sept. 18, but the contract later eased and was trading up 1% at 0148 GMT.
Three-month zinc on the London Metal Exchange (LME) dipped 0.2% to $2,539 a tonne, reversing a streak of three straight gains but still hovering around a four-month high level hit last week.
* ZINC STOCKS: On-warrant LME zinc stocks <MZNSTX-TOTAL> dropped to a record low of 33,000 tonnes, while Shanghai zinc stocks <ZN-STX-SGH> fell to their lowest since June 6 at 64,075 tonnes, latest data showed.
* ZINC SPREAD: The premium of LME cash over three-month zinc contract <CMZN0-3> rose to $46.50 a tonne, its highest since September 30, indicating tight nearby supplies.
* ZINC BALANCE: Refined zinc is expected to be in a deficit of 178,000 tonnes in 2019, however it is likely to move into a surplus of 192,000 tonnes in 2020, the International Lead and Zinc Study Group said.
* NICKEL: LME nickel dipped 0.1% to $16,630 a tonne, and ShFE nickel was almost unchanged, while the difference between the cash and the three-month contract <MNI0-3> was at a premium of $26 a tonne.
* INDONESIA: Indonesian nickel miners agreed on Monday to stop nickel ore exports immediately, the country's investment agency chief Bahlil Lahadalia said.
* TRADE TALKS: U.S. President Donald Trump said on Monday he expected to sign a significant part of the trade deal with China ahead of schedule but did not elaborate on the timing.
* COPPER TC/RC: The copper treatment charge (TC) benchmark in 2020 is likely to fall at least 13% from this year to $60-70 a tonne due to tight ore supply, a Reuters survey showed, as the world's metal industry gathers in London for LME Week.
* METALS OUTLOOK: Prices of copper and other industrial metals are expected to be capped next year as weak economic growth weighs on the market, a Reuters poll showed.
* PRICES: LME copper eased 0.1%, aluminum was almost unchanged and lead fell 0.3%. ShFE copper dipped 0.1%, aluminum decreased 0.5%, while tin fell 0.3%.
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* Asian shares scaled a three-month high after Wall Street hit all-time peaks amid hopes of progress in Sino-U.S. trade talks and for another dose of policy stimulus from the Federal Reserve this week.
DATA AHEAD (GMT)
0700 UK Nationwide house prices Oct
0745 France Consumer Confidence Oct
0900* Italy Producer Prices YY Sept
0930 UK BOE Consumer Credit Sept
0930 UK Mortgage Lending Sept
0930 UK Mortgage Approvals Sept
1300 US CaseShiller 20 MM SA Aug
1400 US Consumer Confidence Oct
1400 US Pending Home Sales Change MM Sept
N/A US U.S. Federal Reserve's Federal Open Market
Committee starts its two-day meeting on
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 = 7.0641 Chinese yuan renminbi) (Reporting by Mai Nguyen; Editing by Rashmi Aich)