METALS-Nickel and copper march to fresh peaks on supply concerns

       * Copper breaks back above $10,000
    * Tin hits record peak
    * GRAPHIC-2022 asset returns: http://tmsnrt.rs/2jvdmXl

 (Recasts on copper hitting new high)
    By Eric Onstad
    LONDON, Jan 12 (Reuters) - Nickel prices surged to their
highest in a decade on Wednesday and copper broke back through
$10,000 a tonne on renewed supply fears as inventories dwindle.
    Industrial metals were also buoyed by easing concerns over
economic growth in top metals consumer China.
    Three-month nickel         on the London Metal Exchange
(LME) jumped as much as 4.4% to $22,745 a tonne, its highest
since August 2011. It pared gains to stand at $21,990 by 1500
GMT, up 0.9%.
    "The battery king, nickel, has been the initial driver,
breaking above that $21,000 level, gapping higher, and now the
rally is filtering through to copper and the others," said Ole
Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
    Nickel's sharp gains were partly fuelled by speculators
buying back bearish positions, broker Marex said in a note.
    "The focus in China is moving away from worries about the
property sector slowdown to increased signs that they are going
to provide stimulus and support to the economy, some of which
will benefit industrial metals," Hansen added.
    In China, nickel prices leapt to a record high, with the
February contract on the Shanghai Futures Exchange
ending daytime trading 3.8% up at 162,340 yuan ($25,510) a
tonne.

    * LME copper         touched an intraday peak of $10,034.50
a tonne, trading above the key psychological level for the first
time since Oct. 21. It later settled at $9,970.50, up 2.6%.
    * Nickel stocks in LME warehouses have halved
 over the past five months to 99,462 tonnes, their lowest since
December 2019, while refined nickel inventories in ShFE
warehouses held close to a record low of 4,455
tonnes hit in August 2021.
    * LME cash nickel was at a premium of $192 a tonne over the
three-month contract , its highest since October 2019,
indicating tight near-term supplies.
    * LME aluminium         rose 0.7% to $2,989.50 and lead
        climbed 1.3% to $2,330, but zinc         dipped 0.5% to
$3,537.50.
    Tin         touched a record high of $41,490 a tonne and was
last up 2.1% at $41,300.

    * For the top stories in metals and other news, click
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    ($1 = 6.3639 yuan)

 (Reporting by Eileen Soreng in Bengaluru
Editing by Mark Potter and David Goodman
)



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