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Shanghai nickel jumps to 3-month high after week-long break



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Oct 8 (Reuters) -Shanghai nickel prices jumped nearly 6% on Tuesday to a three-month high as trading resumed after a week-long holiday, with supply disruptions underpinning the market.

The most-traded November nickel contract on the Shanghai Futures Exchange (SHFE) SNIcv1 was up 3.4% at 135,470 yuan ($19,304.32) a metric ton, after hitting its highest since July 9 at 138,800 yuan earlier in the session.

Three-month nickel on the London Metal Exchange (LME) CMNI3 fell 1.2% to $17,830 per ton by 0145 GMT.

Brazilian miner Vale temporarily interrupted operations at its Onca Puma nickel plant in Para state after heavy winds damaged an electricity transmission network.

Madagascar's nickel and cobalt miner Ambatovy has shut down a pipeline supplying ore from its mine in the country's east to a processing and refinery plant due to damage, its major shareholder Sumitomo Corp said last week.

SHFE copper SCFcv1 slipped 0.3% to 7,8540 yuan and LME copper CMCU3 edged down 0.1% to $9,918, with market players focusing on a press conference of China's National Development and Reform Commission for further cues.

Before the holiday break, China announced its most aggressive stimulus measures since the COVID-19 pandemic to pull the economy out of its deflationary funk and back towards the government's growth target. This move has given an overall boost to the industrial metals complex.

Stocks in warehouses tracked by the Shanghai Futures Exchange have dropped nearly 60% since early June to 141,625 tons CU-STX-SGH.

Commodity trader IXM's head of refined metal said the uptrend in demand for metals such as copper used in electric vehicles is intact despite doubts raised by the slowdown in electric-vehicle sales, but estimating numbers is difficult as the market is evolving.

LME aluminium CMAL3 eased 0.3% to $2,650 a ton, zinc CMZN3 lost 0.4% to $3,160.5, tin CMSN3 fell 0.8% to $33,650, and lead CMPB3 declined 0.5% to $2,138.5.

SHFE aluminium SAFcv1 rose 1.2% to 20,745 yuan a ton, zinc SZNcv1 firmed 2.4% to 25,675 yuan, lead SPBcv1 was up 0.3% at 16,995 yuan, and tin SSNcv1 jumped 2% to 268,750 yuan.


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Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu

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