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METALS-Copper sinks as inflation fears eclipse South American political risk


By Reuters Staff
(Updates prices, China to curb high prices)
LONDON, May 19 (Reuters) - Copper prices fell on Wednesday as rising inflation pushed investors into a risk-off sentiment, offsetting the impact of potential supply disruptions in the top producing region of South America.
Benchmark three-month copper on the London Metal Exchange (LME) shed 3% to $10,101 a tonne by 1311 GMT.
The metal, widely used in the power and construction industries, was on track for its biggest daily fall since February. Last week, copper hit a record of $10,747.50 a tonne and has jumped 32% so far this year.
“A lot of good news has already been priced into copper,” said Julius Baer analyst Carsten Menke, citing the muted impact of potential for higher royalties and strikes in top producer Chile and a socialist party leading polls in Peru have had on prices. ....

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UPDATE 1-China's Lygend starts milestone nickel project in Indonesia


Company to send products to China soon
Project start-up likely to pressure nickel price (Adds quotes, detail)
BEIJING/HANOI, May 19 (Reuters) - China’s Lygend Mining said on Wednesday its nickel and cobalt smelting project in Indonesia had made its first batch of mixed hydroxide precipitate (MHP), becoming the first high-pressure acid leach (HPAL) project in the country to reach production.
The $1.05-billion project on Obi island in the province of North Maluku is among several cobalt-nickel HPAL plants in nickel miner Indonesia that are under the spotlight as a source of supply for the burgeoning electric-vehicle battery sector.
“Our first batch of nickel and cobalt hydroxide products will be shipped to China soon, and gradually enter the global market,” said Lygend’s president Jiang Xinfang. ....

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