Tags: nickel | precious metal | prices | goldman sachs

Nickel Touches 14-Month High as Goldman Sachs Sees Further Gains

Monday, 14 Apr 2014 08:42 AM

Nickel reached the highest level in almost 14 months in London after Goldman Sachs Group Inc. said this year’s 28 percent advance is set to continue amid concern about limited supply of the metal.

Prices may climb as high as $20,000 a metric ton, Goldman Sachs analysts said in a report dated Sunday. Nickel gained in 2014 after Indonesia, the biggest producer from mines, barred exports of raw mineral ores in January and Western nations imposed sanctions on Russia, home to OAO GMK Norilsk Nickel, the leading producer of refined metal.

“We have been bullish on nickel since the start of the year, but prices have risen more quickly than in our base case,” Jeff Currie, an analyst at Goldman Sachs, said in the report.

“The price rally predominantly reflects the ongoing Indonesian ore export ban” and “concerns about the potential impact of any sanctions on Russian commodity exports.”

Nickel for delivery in three months added 2.6 percent to $17,850 a ton by 12:53 p.m. on the London Metal Exchange after touching $17,917, the highest level since Feb. 19, 2013. Prices increased for an 11th session, the longest winning streak since October 2010. Citigroup Inc. raised its 2015 estimate by 13 percent to $21,500 a ton.

Nickel inventories monitored by the LME rose 1.1 percent to 279,966 tons, daily data showed. Orders to remove the metal from warehouses dropped 0.6 percent to 133,170 tons.

LME nickel futures outstanding, or open interest, rose to a record 297,642 contracts as of April 10, data compiled by Bloomberg showed. When open interest and prices rise together, that may signal new long positions, or bets on a gain.

“Weaker nickel supply, along with steady demand and rising costs, looks set to lend nickel prices further support heading into Q2 and into year-end,” Leon Westgate, an analyst at Standard Bank Plc in London, said in a report.

Copper for delivery in three months fell 0.3 percent to $6,652 a ton on the LME. Stockpiles, at the lowest since November 2012, shrank for a 13th session to 244,950 tons.

The metal for delivery in May rose 0.1 percent to $3.045 a pound on the Comex in New York. Zinc and tin gained in London as aluminum fell, while lead was little changed.

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Nickel reached the highest level in almost 14 months in London after Goldman Sachs Group Inc. said this year's 28 percent advance is set to continue amid concern about limited supply of the metal.
nickel, precious metal, prices, goldman sachs
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2014-42-14
Monday, 14 Apr 2014 08:42 AM
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