LONDON, Jan 29 (Reuters) – Zinc prices surged to the highest since 2007 on Monday as falling stockpiles suggested tight supplies, while expectations of strong demand pushed nickel to a 2 1/2-year peak after it broke through a key technical level last week. Industrial metals broadly rose as investors looked ahead to details of infrastructure-building in U.S. President Donald Trump’s State of the Union address on Tuesday and Chinese manufacturing PMI data on Wednesday. “There is fresh money coming through and lots of optimism about the global economy,” said Robin Bhar, head of metals research at Societe Generale. ZINC: Benchmark zinc on the London Metal Exchange was up 1.7 percent at $3,538 a tonne at 1129 GMT after hitting $3,584, the highest since July 2007. Zinc, used to galvanize steel, has rocketed 150 percent since early 2016. STOCKS: Shortages of refined metal have seen stocks in LME-approved warehouses fall to their lowest since 2008 at 176,275 tonnes. HOLDINGS: Worries about a tight LME market have been reinforced by a large position holding between 80 and 89 percent of zinc warrants and cash contracts. DEFICIT: Consultancy Wood Mackenzie expects a zinc market deficit of 350,000 tonnes this year and 150,000 tonnes in 2019. NICKEL: Nickel was up 1.7 percent at $12,880 after touching $14,040, the highest since May 2015. The stainless steel ingredient has been boosted by expectations of surging demand for use in batteries to power electric vehicles. TECHNICALS: Nickel last week burst above a long-term downtrend from 2011, triggering technical buying. Fibonacci resistance comes in at $14,590, said brokers Marex Spectron. POSITIONING: Funds expanded their bets on higher prices, taking their net long position in LME nickel to the biggest in a year. TIN: LME tin was 1.5 percent higher at $21,925 after hitting $21,720, the highest since November 2016. The metal used for soldering has risen 17 percent since mid-December. STOCKS: Tin stocks are near record lows and one entity holds between 50 and 79 percent of warrants and cash contracts, fanning fears over availability. BACKWARDATION: Concerns over tight supply have driven the premium for cash metal over the 3-month contract above $200.  CHINA: Ahead of manufacturing PMI data on Wednesday a senior official said economic growth in China, the world’s biggest metals consumer, will likely slow to 6.5-6.8 percent this year. COPPER STRIKE: Chile’s Codelco has struck a contract deal with workers at its Andina copper mine as it tries to reach advance agreements with unions in a year busy with labour negotiations.

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