METALS-Shanghai aluminium hits three-month low as coal prices tumble
Oct 28 (Reuters) - Aluminium prices in Shanghai hit their lowest in more than three months on Thursday as tumbling coal prices eased worries about rising production costs for the energy-intensive metal.
The most-traded December copper contract on the Shanghai Futures Exchange SCFcv1 dropped as much as 7.6% to 19,200 yuan ($2,999.95) a tonne, the lowest since July 22. The contract has lost 23% since the beginning of last week.
Three-month copper on the London Metal Exchange CMCU3 declined as much as 3.1% to a two-month low of $2,602 a tonne, having shed 19% since Oct. 18 when the contract hit its highest since July 2008.
The most-traded thermal coal futures contract CZCcv1 on the Zhengzhou Commodity Exchange fell 13% to 1,033.8 yuan ($161.47) per tonne, hitting the daily trading limit.
China's state planner has set an immediate price target for thermal coal in its most direct intervention yet to cool the market for the key power-generating fuel amid a severe power crunch, trading and power firm sources told Reuters.
"It's a (coal) policy-driven market. I don't bet on price movement anymore," an aluminium trader said.
FUNDAMENTALS
* ShFE tin SSNcv1 hit its limit down, tumbling 8% to 258,370 yuan a tonne, its lowest since Sept. 22, before recovering to 262,600 yuan a tonne, still down 6.5% at 0615 GMT. LME tin CMSN3 eased 0.7% to $35,160 a tonne.
* ShFE nickel SNIcv1 dropped as much as 4.9% to its lowest since Oct. 14 of 143,500 yuan a tonne and LME nickel lost as much as 0.6% to trade near a two-week low of $19,300 a tonne.
* LME copper CMCU3 rose 1.6% to $9,704 a tonne, ShFE nickel SCFcv1 eased 0.3% to 71,250 yuan a tonne while LME zinc CMZN3 rose 1.2% to $3,376.50 a tonne.
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