(Updates with closing prices)By Peter Hobson and Mai NguyenLONDON, Nov 23 (Reuters) - Nickel prices on Friday touchedtheir lowest since October last year, pulled down by worriesabout a supply surplus in 2019 and weaker demand from China, thelargest consumer of the metal.
Most other base metal prices also fell sharply on concernsthat U.S.-China trade talks next week could fail, leading toweaker economic growth.Adding to the bearish mood for nickel was news that Germanchemicals giant BASF plans to use less of the metalin its electric car batteries. Electric vehicles have beentouted as a major new source of demand. Benchmark nickel on the London Metal Exchange closeddown 0.5 percent at $10,915 a tonne after touching a 13-monthlow of $10,735. It fell 3.9 percent this week.
The most active nickel contract on the Shanghai FuturesExchange settled 2.2 percent lower on Friday and down5.8 percent this week."I heard some Chinese investors are shooting (down) thenickel price. They think nickel production in Indonesia willbring the market into surplus next year, and demand forstainless will be bad," CRU analyst Peter Peng said, adding thatthey expected the nickel price to fall to about $8,000.
NICKEL SUPPLY: Expectations of a supply avalanche hittingthe nickel market next year due to new capacity in Indonesiahave sent prices down more than 15 percent since September. CHINA TRADE: U.S. President Donald Trump and his Chinesecounterpart Xi Jinping are expected to hold talks during the G20summit next week.CHINA STOCKS/YUAN: Shanghai equities fell by the most infive weeks on Friday and the yuan weakened, makingdollar-priced metals more expensive for Chinese buyers.BASF BATTERIES: Germany's BASF has a new recipefor electric car batteries which cuts the nickel content by morethan half and uses more manganese. CHINA SCRAP IMPORTS: China's October scrap metal importsfell to their lowest since at least 2014 amid tighteningregulations on waste imports. Arrivals of scrap copper last month fell to 170,000 tonnesfrom 200,000 tonnes in September and scrap aluminium importsfell to 90,000 tonnes from 100,000 tonnes.
CHINA ALUMINA: China's exports of aluminium raw ingredientalumina meanwhile soared in October to their highest since atleast 2014 at 460,072 tonnes. TIN SURPLUS: The global tin market is expected to move intoa surplus of 500 tonnes next year from a 7,500-tonne deficit in2018, the International Tin Association said on Friday. PRICES: LME copper ended down 0.8 percent at $6,207a tonne, aluminium finished up 0.1 percent at $1,949,zinc fell 2.4 percent to $2,519, lead slipped1.3 percent to $1,968 and tin closed 2.3 percent lowerat $18,800.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Peter Hobson and Mai NguyenEditing by Jan Harvey and Louise Heavens)