Nickel set to fall for 5th day on supply surplus

SINGAPORE, Nov 23 (Reuters) – London and Shanghai nickel fell further on Friday, with the market on track for its fifth day of declines on concerns about a supply surplus in 2019 and slowing demand in top consumer China. London’s three-month nickel lost 1.5 percent to $10,805 a tonne by 0435 GMT, its lowest in nearly a year, while Shanghai’s most active nickel contract tumbled 3.2 percent to 88,160 yuan ($12,706.65) a tonne. “I heard some Chinese investors are shooting (down) nickel price. They think nickel production in Indonesia will bring market into surplus next year, and demand for stainless will be bad,” said analyst Peter Peng at CRU Group. “They expect nickel price down to around $8,000.” Other base metals moved in a tight range, with prices capped by trade tensions between Washington and Beijing and as the market eyed a meeting next week between the two countries’ leaders. Trade talks between the United States and China should be equal and mutually beneficial, Chinese Vice Commerce Minister Wang Shouwen said, adding that he hoped the two countries can find ways to manage their differences through dialogue. U.S.-CHINA: China rejected fresh U.S. accusations of perpetuating “unfair” trade practices and urged Washington on Thursday to stop making provocations, showing little sign of backing down days ahead a high-stakes meeting between leaders from both countries. INDONESIA COPPER: Indonesia’s environment ministry aims to resolve within two weeks environmental issues that have been holding up the state’s plans to acquire a majority stake in Freeport McMoRan Inc’s Grasberg copper mine. PRICES: Three-month copper on the London Metal Exchange eased 0.3 percent to $6,238.5 a tonne while Shanghai copper edged up 0.2 percent