Lima, January 10, 2022Updated on 10/01/2022 09:12 am
Nickel and other base metal prices were trading near their highs in more than two months on Monday, driven by demand from the electric vehicle battery sector that reduced stocks at licensed warehouses on the London Metal Exchange (LME).
Benchmark nickel on the LME was up 1% to $ 20,940 a tonne as of 10:56 GMT, hitting $ 21,165 a tonne last week, the highest level since Nov. 24. For its part, the three-month obre in London rose 0.3% to US $ 9,681 a ton.
“Nickel stocks in LME warehouses are running out because they can be used to make nickel sulfate for electric vehicle batteries.”said Wenyu Yao, an analyst at ING.
Demand for electric vehicles has been particularly strong in China, where Volkswagen, GM, Toyota Motor Corp and Tesla are increasing production.
Meanwhile, production cuts in Europe due to high energy costs are expected to drive increases in aluminum prices, which hit $ 2,980 a tonne on Friday, a peak since October 21. On Monday, it was up 1.1% at $ 2,946.5 a ton.
Among other base metals, three-month copper in London was up 0.3% to US $ 9,681 a ton, while zinc was up 0.1% to US $ 3,537 a ton, lead was up 0.3% to US $ 2,286 a ton and tin advanced 0.5% to $ 40,050.