Off The Wire
METALS-Nickel slides more than 3 pct as EV-fuelled rally reverses
* Nickel on track for biggest 1-day fall since Sept. 22
* GRAPHIC-2017 asset returns: * LME/ShFE arb: (Updates with official prices)
By Jan Harvey
LONDON, Nov 9 (Reuters) - Nickel slid more than 3 percent on Thursday, correcting further from the more than two-year high it hit last week on speculation that an expected electric vehicle boom would drive up demand.
Nickel prices surged almost 10 percent during the annual London Metal Exchange Week industry gathering on expectations that nickel demand for use in lithium ion batteries would increase as electric car buying ramped up.
The metal has since come under pressure from profit taking after it jumped above $13,000 a tonne, ABN Amro analyst Casper Burgering said, with broader issues such as recent strength in the dollar also feeding into the correction.
"I still think the fundamentals for nickel are sound, though stocks are relatively high," he said.
* NICKEL: London Metal Exchange nickel was untraded in official midday rings, but was last bid down 3.1 percent at $12,300 a tonne, on track for its biggest one-day slide since September.
* NICKEL STOCKS: Nickel inventories held in LME warehouses rose 2,352 tonnes from Tuesday's near 7-week low, exchange data showed on Wednesday.
* MORGAN STANLEY: While it expects annual nickel demand from the EV sector to grow to 300,000 tonnes by 2025, Morgan Stanley said in a report that the market had been ignoring downside risks from policy developments in Indonesia, which recently lifted curbs on ore exports, and the Philippines, where the end of a ban on open-pit mining has been mooted. * COPPER: LME copper was down 0.8 percent in official trading at $6,802 a tonne, erasing a small gain from the previous session. It earlier fell to its lowest in nearly a month at $6,761.50.
* COPPER TECHNICALS: LME copper may fall to $6,756 an tonne, its wave pattern and a Fibo projection analysis suggest, Reuters technical analyst Wang Tao said. * CHINA INFLATION: China's producer prices were surprisingly strong in October, while consumer inflation picked up pace, suggesting the world's second-largest economy remains robust despite expected curbs on factory output as the government pursues a war on smog. * POLL: Resurgent industrial metals prices, powered by enthusiasm for the EV revolution and a Chinese pollution crackdown are starting to look overblown, raising the risk of a correction next year, a Reuters poll showed. * ZINC STOCKS: LME zinc stock fell another 3,275 tonnes, exchange data showed on Thursday, taking them to their lowest in nearly two months.
* OTHER METALS: LME zinc was down 0.8 percent at $3,168 a tonne and aluminium was 0.8 percent lower at $2,091.50 in official trading. Lead and tin were untraded in official rings, but were last bid little changed at $2,506 and 0.5 percent lower at $19,375 a tonne respectively.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Top Base and Precious Metals Analysis - GFMS GRAPHIC-2017 asset returns LME/ShFE arb ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Melanie Burton in Melbourne; Editing by Adrian Croft and David Evans)