Tags: nickel | metal | prices | supply

Nickel Extends Longest Rally Since 2010 Amid Supply Concerns

Thursday, 10 Apr 2014 08:41 AM

Nickel extended its longest streak of gains since October 2010 on concern that global demand will exceed supply after Indonesia’s ore export ban.

Nickel stockpiles monitored by the London Metal Exchange are heading for the first monthly drop since June 2012. OAO GMK Norilsk Nickel, the top producer, sees a shortage as early as next quarter. The International Nickel Study Group cut its estimate on April 4 for a 2014 surplus of 50,000 metric tons from an October forecast of 120,000 tons.

“Nickel is the outperformer,” RBC Capital Markets LLC wrote in a note. “Norilsk suggesting the Indonesian ore ban could push the market into deficit as early as third quarter this year, combined with lower LME stocks and the INSG seeing surplus shrinking has given some support.”

The contract for delivery in three months climbed 2.9 percent to $17,180 a ton by 12:54 p.m. on the LME. It rose as much as 3 percent to $17,188 a ton, the highest level since March 2013.

Nickel is up 24 percent this year, the best performer among the six main metals traded on the LME, as Indonesia, the world’s biggest producer of the metal from mines, banned ore shipments in January. The global market will see a deficit of 28,000 tons by the fourth quarter, Macquarie Group Ltd. said.

Nickel stockpiles monitored by the LME fell 0.4 percent to 278,844 tons, the lowest since March 19 and are down 2.1 percent this month, daily exchange figures showed. Orders to remove the metal from warehouses jumped 0.5 percent to 133,200 tons.

Copper for delivery in three months advanced 0.4 percent to $6,644 a ton on the LME. The metal for delivery in May rose 0.1 percent to $3.04 a pound on the Comex in New York.

China

While China’s exports and imports unexpectedly fell in March, imports of unwrought copper and copper products rose to 420,000 tons, 11 percent higher than in February, customs data showed. Imports of the metal rose because of deliveries from long-term supply contracts and demand for using copper as collateral in financing agreements, said Li Ye, an analyst at Shenyin & Wanguo Futures Co. in Shanghai.

Aluminum climbed for a third day to a five-month high on the LME. Zinc, lead and tin also gained.

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Nickel extended its longest streak of gains since October 2010 on concern that global demand will exceed supply after Indonesia's ore export ban.Nickel stockpiles monitored by the London Metal Exchange are heading for the first monthly drop since June 2012. OAO GMK Norilsk...
nickel, metal, prices, supply
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2014-41-10
Thursday, 10 Apr 2014 08:41 AM
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