A worker transforms an old steel shipping container which may later be used as living spaces or shops or restaurants in Cairo, Egypt April 19, 2017.
MELBOURNE, May 22 (Reuters) - Shanghai zinc and nickel surged on Monday on the back of a sustained crackdown in China's polluting steel industry, which fuelled worries about steel supply and lifted the prices of its raw materials.
Both metals were jolted out of a downtrend that last week saw them touch their lowest for the year amid concerns about a slowdown in China's metals demand. The rally in steel prices also caught short-holders by surprise and forced them to cover their positions.
FUNDAMENTALS
ZINC: Shanghai Futures Exchange zinc SZNcv1 surged 5 percent. London Metal Exchange zinc CMZN3 rallied 1.5 percent to $2,655 a tonne, having earlier struck its highest in two weeks at $2,667 a tonne, the most expensive since May 2.
NICKEL: SHFE nickel SNIcv1 jumped 3 percent while LME nickel CMNI3 rallied half a percent.
STEEL: Prices of steel and its input materials rallied, supported by worries over tighter supply as China sustains a crackdown against polluting producers.
CHINA POLLUTION: China's Tangshan city launched a campaign to improve air quality last week, saying steel mills in the country's top producing region that fail to meet emission standards face suspension and heavy fines.
CHINA PROPERTY: China issued a draft of new rules for property sales and leasing on Friday to improve management and operation in a part of the services sector that is often poorly regulated.
COPPER: LME copper CMCU3 edged down by 0.1 percent to $5,675 a tonne by 0140 GMT, having hit the highest since early May at $5,694.50 a tonne on Friday. SHFE copper SCFcv1 contract was up 1.7 percent at 45,910 yuan ($6,670) a tonne.
COPPER SPECULATORS: Hedge funds and other money managers increased their net long position in COMEX copper in the week ended May 16, U.S. Commodity Futures Trading Commission (CFTC) data showed Friday.
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MARKETS NEWS
Asian stocks are set to edge higher on Monday following cautious gains on Wall Street, though the dollar is set to come under pressure as Washington's political turmoil undermines confidence in U.S. economic policy. [MKTS/GLOB]
MCT Price at posting:
4.2¢ Sentiment: Buy Disclosure: Held
