Nickel Posts Longest Advance in a Month Amid Supply Concerns
Nickel capped the longest rally in a month in London amid concern that supplies will lag behind demand this year as an export ban in Indonesia crimps ore shipments.
Costs of nickel-pig iron, a lower-grade alternative to refined metal, are rising and pipeline inventories are low so there is potential for restocking, Gayle Berry, a strategist at Jefferies Group LLC, said in a report today. She forecast a deficit of about 40,000 metric tons after a 45,000-ton surplus in 2014. In the second half of last year, nickel dropped 20 percent on signs of slowing demand in China and Europe.
“The supply condition is a concern, and some buyers are back after the big drop in prices,” Edward Meir, an analyst at INTL FCS tone in New York, said in a telephone interview. “While we may not see a big rally, we could definitely see some support at these levels.”
Nickel for delivery has risen 1.9 percent to settle at $15,550 a ton at 5:50 p.m. in three months on the London Metal Exchange. Earlier, the price reached $15,567, the highest since Dec. 24. The metal rose for a third straight day in the longest run since Dec. 4.
“We think current nickel prices offer a buying opportunity and favor building length on dips below $16,000 a ton in 2015,” Berry said in the report.
Copper for delivery in three months dropped 0.5 percent to $6,115 a ton ($2.77 a pound). Earlier, prices fell to $6,091.50, the lowest since June 2010.
Lead gained, while zinc and tin declined in London. Aluminum rose for the first time in 12 sessions.
In New York, copper futures for March delivery dropped 0.3 percent to $2.7585 a pound.
Costs of nickel-pig iron, a lower-grade alternative to refined metal, are rising and pipeline inventories are low so there is potential for restocking, Gayle Berry, a strategist at Jefferies Group LLC, said in a report today. She forecast a deficit of about 40,000 metric tons after a 45,000-ton surplus in 2014. In the second half of last year, nickel dropped 20 percent on signs of slowing demand in China and Europe.
“The supply condition is a concern, and some buyers are back after the big drop in prices,” Edward Meir, an analyst at INTL FCS tone in New York, said in a telephone interview. “While we may not see a big rally, we could definitely see some support at these levels.”
Nickel for delivery has risen 1.9 percent to settle at $15,550 a ton at 5:50 p.m. in three months on the London Metal Exchange. Earlier, the price reached $15,567, the highest since Dec. 24. The metal rose for a third straight day in the longest run since Dec. 4.
“We think current nickel prices offer a buying opportunity and favor building length on dips below $16,000 a ton in 2015,” Berry said in the report.
Copper for delivery in three months dropped 0.5 percent to $6,115 a ton ($2.77 a pound). Earlier, prices fell to $6,091.50, the lowest since June 2010.
Lead gained, while zinc and tin declined in London. Aluminum rose for the first time in 12 sessions.
In New York, copper futures for March delivery dropped 0.3 percent to $2.7585 a pound.
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