Wires

METALS-Shanghai aluminium hits near one-month peak as stocks dwindle

SINGAPORE, Nov 4 (Reuters) - Shanghai aluminium prices rose to their highest in almost a month on Monday due to a drop in inventories of the metal used in transport and packaging and as signs of a pick up in demand emerged.

The most active aluminium contract on the Shanghai Futures Exchange (ShFE) rose as much as 0.9% to 13,960 yuan ($1,985.15) a tonne, its highest since Oct. 9. It was up 0.6% at 13,925 yuan a tonne, as of 0227 GMT.

Benchmark three-month aluminium on the London Metal Exchange (LME) eased 0.2%, after jumping 1.8% in the previous session, its strongest gain since Aug. 8.

FUNDAMENTALS

* ALUMINIUM STOCKS: Aluminium stocks in warehouses tracked by ShFE <AL-STX-SGH> dropped to their lowest since March 2017 at 278,736 tonnes, while LME aluminium inventories <MALSTX-TOTAL> dipped to their lowest since Sept. 30 at 956,200 tonnes.

* SPREAD: The difference between the LME aluminium cash and three month contracts <CMAL0-3> flipped to a premium for the first time since January to $4.75 a tonne, indicating tight nearby supplies.

* ALUMINIUM DEMAND: Anti-plastic trend has started to boost demand for aluminium packaging, while electric cars will also boost consumption for the metal, Novelis senior vice president and Europe president Emilio Braghi said.

* BALANCE: The global aluminium market is due to flip into a surplus of 304,000 tonnes next year from a deficit of 658,500 tonnes in 2019, a recent Reuters poll showed.

* LME WAREHOUSE: The London Metal Exchange will allow warehouses in its network to extend queues for loading out metal, and will require them to report stocks stored outside the LME system that could be brought in at a later date.

* TRADE DEAL: The United States and China on Friday said they made progress in talks aimed at defusing a nearly 16-month-long trade war that has harmed the global economy, and U.S. officials said a deal could be signed this month.

* LME PRICES: LME copper edged up 0.1% to $5,858 a tonne, nickel fell 0.3% to $16,725 a tonne, zinc rose 0.2% to $2,526 a tonne and lead edged up 0.1% to $2,165 a tonne.

* SHFE PRICES: ShFE copper was almost unchanged at 47,030 yuan a tonne, nickel rose 0.5% to 134,000 yuan a tonne, zinc advanced 0.5% to 19,040 yuan a tonne while lead fell 0.5% to 16,455 yuan a tonne and tin dropped 0.8% to 136,310 yuan a tonne.

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MARKETS NEWS

* Asian shares rose to 14-week highs as growing optimism over U.S.-China trade talks and upbeat U.S. job data boosted global investors' appetite for riskier assets.

DATA/EVENTS AHEAD (GMT)

0030 Australia Retail Sales MM Sept

0850 France Markit Mfg PMI Oct

0855 Germany Markit/BME Mfg PMI Oct

0900 EU Markit Mfg Final PMI Oct

1500 US Factory Orders MM Sept

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 = 7.0322 Chinese yuan) (Reporting by Mai Nguyen; Editing by Aditya Soni)