* LME/ShFE arb: http://tmsnrt.rs/2oQ5nm20
* Nickel, Indonesia and the Philippines: http://tmsnrt.rs/2faVBvx
* Cancelled zinc warrants at nearly 50 percent (Recasts, adds comment, changes dateline from Melbourne)
By Pratima Desai
LONDON, Aug 21 (Reuters) - Zinc prices climbed to their highest in nearly a decade on Monday as expectations of a market deficit fuelled speculative buying, though technical factors are likely to limit gains.
Benchmark zinc CMZN3 on the London Metal Exchange was up 0.6 percent at $3,142 a tonne. Prices of the metal used to galvanise steel had earlier touched $3,180.5, the highest since October 2007.
"We might see higher levels if the International Lead and Zinc Study Group (ILZSG) confirms the zinc market was in deficit for the first half of the year," said Commerzbank (DE:CBKG) analyst Eugen Weinberg.
"There has been a lot of momentum buying. There is a chance of a price correction as these levels may mean a reversal of capacity shutdowns."
ILZSG: The study group last month said that the zinc market registered a deficit of 178,000 tonnes between January and May. The average of analysts' forecasts in a recent Reuters survey predicted a zinc market deficit of 412,000 tonnes this year. COMMODITYPOLL01
TECHNICALS: Zinc price support is seen at $2,900 -- an area of congestion this year. The first upside barrier is at a Fibonacci retracement level of $3,200.
LME STOCKS: Zinc stocks in LME-approved warehouses, at 247,850 tonnes, are down more than 40 percent since the start of the year. Cancelled warrants -- metal earmarked for delivery -- at nearly 50 percent also reinforce concern about shortages on the LME market. MZNSTX-TOTAL
SPREADS: Worries about a tight market have narrowed the discount for the cash zinc contract against the three-month MZN0-3 to $7 a tonne from more than $27 at the start of April.
NICKEL PRICE: Nickel CMNI3 was up 2.4 percent at $11,240 a tonne. The stainless steel raw material earlier touched $11,270, its highest since the middle of December.
STOCKS: The nickel price spiked after LME data showed net fresh cancelled warrants of more than 17,000 tonnes. Cancelled warrants as a percentage of total stocks stand at 35 percent. MNISTX-TOTAL
PHILIPPINES: Worries about nickel supplies from the Philippines, the world's top nickel ore exporter, have supported prices for much of this year. An environmental crackdown in top producer China pushed prices MAL3 to $2,112 a tonne last week, the highest since September 2014. It was last up 0.8 percent at $2,079.
The premium CMAL0-3 for the cash aluminium contract over the three-month contract ended at $9.50 a tonne on Friday. That compares with a discount of $26 a month ago.
OTHER PRICES: Copper CMCU3 gained 1.2 percent to $6,562 a tonne, lead CMPB3 rose 0.3 percent to $2,368 and tin CMSN3 was up 0.7 percent at $20,380.
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http://tmsnrt.rs/2lvmIzW LME/ShFE arb
http://tmsnrt.rs/2oQ5nm20
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