LONDON, Sept 27 (Reuters) - Prices of industrial metals came
under pressure on Monday as worries about demand in top consumer
China, where a power crunch and rationing is shutting factories,
The biggest loser was tin, which last week hit a
record high at $36,830 a tonne on the London Metal Exchange, a
gain of 75% since January. Prices of the soldering metal were
down 4.2% at $35,000 a tonne at 1606 GMT.
"The power issue acts as a double-edged sword, hitting
smelter production and leading to reduced supply," said ING
analyst Wenyu Yao. "This is positive for metals prices. However,
it is also affecting semi-fabricating and downstream consumers,
which is negative for prices."
Power usage curbs in China have cut demand for refined tin,
as soldering companies and tin chemical producers in parts of
the country are operating at reduced capacity, the International
Tin Association (ITA) said.
CHINA: Widening power shortages in China have halted
production at numerous factories including many supplying Apple
and Tesla. Tight coal supplies and toughening emission standards
have driven the power shortages across China.
NICKEL: Expectations of output curbs on stainless steel
mills in China because of power shortages have undermined
sentiment in the nickel market.
Two-thirds of nickel consumption is accounted for by the
stainless steel industry, mostly located in China.
Nickel prices fell 2.2% to $18,950 a tonne.
INVENTORIES: Historically low stocks in China are helping to
support copper prices.
Stocks in warehouses monitored by the Shanghai Futures
Exchange <CU-STX-SGH> fell last week for the seventh straight
week to 44,629 tonnes, their lowest since June 2009.
In LME registered warehouses, copper stocks <MCUSTX-TOTAL>
at 223,175 tonnes have fallen more than 10% since the start of
September, while cancelled warrants -- metal earmarked for
delivery -- stand at 44%.
Copper gained 0.4% to $9,370 a tonne.
OTHER METALS: Aluminium ceded 0.9% to 2,888, zinc
was down 1.4% at $3,086 a tonne and lead added
0.5% to $2,165 a tonne.
(Reporting by Pratima Desai; editing by Editing by Simon
Cameron-Moore and David Evans)