(Removes erroneous reference to price in paragraph 2)
* All six LME industrial metals fall
* Zinc touches 3-week high on supply fears
* Zinc deficit grows to 76,200 tonnes in August-ILZSGBy Peter HobsonLONDON, Oct 24 (Reuters) - Industrial metals prices fell onWednesday, pushed lower by a stronger dollar and losses onglobal stock markets that reflected a lack of appetite for riskyassets, though zinc touched a three-week high in earliertrading.Benchmark zinc on the London Metal Exchange (LME) closed down 0.2 percent at $2,663 a tonne after reaching itshighest since Oct. 2.The metal used to galvanise steel has outperformed otherindustrial metals since hitting a 22-month low in August. It isup 16.5 percent since then.
"The driver is tightness in the market," said SocieteGenerale analyst Robin Bhar, pointing to a large supply deficit,elevated prices for cash metal and falling exchange stockpiles.
"Although we are getting new mine supply, we don't see therefined market balancing for a few more years."
GLOBAL MARKETS: A cocktail of disappointing earnings,economic growth concerns, a spat between Italy and the EuropeanUnion and the killing of a Saudi journalist were makinginvestors nervous. DOLLAR: The dollar surged to its strongest since mid-August,pressuring metals by making them more expensive for buyers withother currencies.ZINC STOCKS: On-warrant zinc stocks in LME-registeredwarehouses -- metal available to the market -- have fallen below100,000 tonnes from almost 240,000 tonnes in August and areclose to 10-year lows. SPREAD: The premium for cash zinc over the three-month LMEcontract, at $47, remains close to Monday's $63 one-year high,signalling tight nearby supply. TECHNICALS: "The technical picture (for zinc) is brighteningafter the price appears to have successfully exceeded the100-day moving average, encouraging further buyers to jump onthe bandwagon," Commerzbank analysts said.DEFICIT: The global zinc market had a deficit of 292,000tonnes in the first eight months of the year, the InternationalLead and Zinc Study Group (ILZSG) said. In August the deficitwas 76,200 tonnes. CHINA STIMULUS: China, the largest consumer of metals, morethan quadrupled the value of fixed-asset investment projectsapproved in the third quarter from the April-June period, aspart of efforts to prop up the slowing economy. ANTOFAGASTA: Chile's Antofagasta revised itsfull-year copper production guidance to 705,000-725,000 tonnesfrom 705,000-740,000 tonnes. NORSK HYDRO: The CEO of Norway's Norsk Hydro said he expects a deficit in the aluminium market next year and is uncertainwhen an alumina plant in Brazil would resume full production. PRICES: LME copper ended down 0.3 percent at $6,179a tonne, aluminium finished 0.2 percent lower at $1,998,lead lost 0.6 percent to $2,005, nickel slipped1.2 percent to $12,225 and tin closed 0.1 percent downat $19,275.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Manolo Serapio Jr.Editing by David Goodman and Adrian Croft/EmeliaSithole-Matarise)