Mounting stocks cast shadow over copper prices Nickel prices...

• Mounting stocks cast shadow over copper prices
• Nickel prices likely to fall on improved supply in H2 - Citi
• Coming up: U.S. durable goods for July at 1230 GMT

(Adds quotes, updates prices; changes dateline from MELBOURNE)

Nickel slumped to the lowest in over six weeks on Thursday after worries eased that an environmental crackdown in the Philippines would create shortages.

Other industrial metals were little changed ahead of a key meeting of central bankers.

Nickel had surged 32 percent from the beginning of June until it hit a one-year peak in early August as authorities in the Philippines launched a campaign to close mining operations that failed to met environmental regulations.

"It did feel that the market got ahead of itself looking further ahead than it perhaps needed to," said Caroline Bain, senior commodities economist at Capital Economics.

With only several mines having been closed or suspended, worries about a blanket ban seem to have been unfounded, analysts said.

"Despite the closure of eight small-scale producers so far, we could see imports stabilise, belying any concerns of supply constriction from the Philippines that has recently riled markets, artificially boosting nickel prices," Citi said in a note.

Three-month nickel on the London Metal Exchange CMNI3 was down 0.7 percent to $9,925 a tonne at 0940 GMT after hitting the weakest since July 11 at $9,860 and extending a 2.6 percent slump from the previous session.

Losses were also seen in Shanghai Futures Exchange nickel SNIcv1 down 3.3 percent.

There is also increased focus on a surge in exports from Indonesia of ferronickel, an intermediate stage of the metal that contains both nickel and iron.

Inventories are also available to supply the market, Bain said. "One thing always in the background is that even though stocks have fallen recently, they are still high. So there's no immediate panic about supply."

LME nickel stocks total 372,414 tonnes. Other base metals gained little direction from a rangebound dollar as investors stayed on the sidelines before ahead of the global central bankers' gathering in Jackson Hole, Wyoming, at which Federal Reserve Chair Janet Yellen may offer new clues on U.S. monetary policy. [USD/]

LME copper CMCU3 edged up 0.2 percent to $4,640.50 a tonne, following 1.7-percent loss in the previous session, when it fell to its weakest since July 24.

Copper has been under pressure from a rise in LME copper stocks, which added another 9,175 tonnes on Thursday, bringing total stocks to 263,875, a jump of 72 percent since June 1. MCUSTX-TOTAL

Aluminium CMAL3 was virtually flat at $1,645.50. PRICES

	Three month LME copper		  CMCU3  
	Most active ShFE copper		 SCFcv1  
	Three month LME aluminium	   CMAL3  
	Most active ShFE aluminium	  SAFcv1  
	Three month LME zinc			CMZN3  
	Most active ShFE zinc		   SZNcv1  
	Three month LME lead			CMPB3  
	Most active ShFE lead		   SPBcv1  
	Three month LME nickel		  CMNI3 
	Most active ShFE nickel		 SNIcv1   
	Three month LME tin			 CMSN3  
	Most active ShFE tin			SSNcv1		  
	 
($1 = 6.6554 Chinese yuan)