News: METALS-Nickel rises for third day as Philippine supply threat simmers

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    • GS hikes nickel forecast by 29 pct to $11,000 in three months
    • GS hikes three month zinc view by 15 pct to $2,300
    • Coming Up: 1400 U.S. Wholesale inventories May

    (Adds comment, detail, updates prices)

    London nickel and copper rose for a third day on Tuesday on Philippine supply concerns, and after investors took heart from a robust U.S. labour report.

    Concerns that the Philippines, China's top supplier of nickel ore used in making stainless steel, may shut some mines after a month-long review that started in July has boosted nickel prices. Nickel prices in London have climbed 7.2 percent since the country announced the review on July 1.

    "It’s not clear cut...(but) at the very least there is a reasonable portion of Philippine supply risk and at the margin that’s going to tighten the nickel trade," said analyst Daniel Morgan at UBS in Sydney.

    "If the price was to sustain the current level for a bit longer, you’re going to see downstream users... start to restock. If you see a restock this could feed on itself and be the next leg for nickel’s recovery."

    Morgan sees prices steady to higher from current levels. London Metal Exchange nickel CMNI3 rose 0.8 percent to $10,125 a tonne by 0253 GMT. Prices have sprung back by more than a third from 13-year lows plumbed in February. SHFE nickel SNIcv1 rallied 1.6 percent.

    Goldman Sachs hiked its nickel price forecasts by 29 percent to $11,000 for three months out, and for zinc by 15 percent, as it boosted price expectations for the next year.

    Adding to the lift on Tuesday, some China steel mills were ordered to cut output which sent China steel futures SRBcv1 and iron ore futures DCIOcv1 up more than 2 percent.

    Among other metals, LME copper CMCU3 climbed by 0.4 percent to $4,766 a tonne by 0134 GMT, adding to a 0.8 percent gain from the previous session after the price found a new floor at $4,865 a tonne last week.

    Shanghai Futures Exchange copper SCFcv1 climbed 0.6 percent to 37,020 yuan ($5,545) a tonne.

    China's economic growth likely cooled to a fresh seven-year low of 6.6 percent in the second quarter as the industrial sector lost steam and a boost from financial services faded, according to a Reuters poll of 61 economists.

    In news, Alcoa Inc on Monday reported a lower quarterly net profit, with falling aluminium and alumina prices pressuring revenue while plant operations have been scaled back ahead of a spinoff of its traditional smelting business later this year.

    Kansas City Federal Reserve President Esther George on Monday said U.S. interest rates are too low and signalled she could be ready to restart her push for rate hikes within the Fed's rate-setting committee.


    	Three month LME copper		  CMCU3  
    	Most active ShFE copper		 SCFcv1  
    	Three month LME aluminium	   CMAL3  
    	Most active ShFE aluminium	  SAFcv1  
    	Three month LME zinc			CMZN3  
    	Most active ShFE zinc		   SZNcv1  
    	Three month LME lead			CMPB3  
    	Most active ShFE lead		   SPBcv1  
    	Three month LME nickel		  CMNI3 
    	Most active ShFE nickel		 SNIcv1   
    	Three month LME tin			 CMSN3  
    	Most active ShFE tin			SSNcv1		  
    ($1 = 6.6906 Chinese yuan renminbi) 
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