Lima, January 11, 2022Updated on 01/11/2022 09:51 am
Nickel prices hit their highest level in more than seven years on Tuesday as global inventories point to strong demand, while a disruption on the London Metal Exchange (LME) weighed on trading.
The nightly power outage in the world’s largest industrial metals market lasted five hours and made activity difficult because some operations were not carried out, according to traders.
“Last night’s break in the LME played a part, and we think some short positions were broken overnight.”Said Sucden Financial’s head of research Geordie Wilkes.
Prices of stainless steel, which is the source of most of the nickel supply, rose because producers cut production for maintenance. Production is also expected to be slowed by the Spring Festival holiday and the Beijing Winter Olympics, as industries have been asked to cut production during the event.
The 3-month benchmark nickel price on the LME was up 3.3% to US $ 21,490 a tonne as of 13:06 GMT, its highest level since May 2014.
The stronger dollar weakness also boosted commodities priced on the greenback, making them more attractive to holders of other currencies.
In other base metals, copper on the LME was up 1.1% at US $ 9,675 a ton; aluminum was up 1.1% at $ 2,970; zinc added 1.7%, to US $ 3,535; lead advanced 0.5% to US $ 2,288; and tin was up 0.7% at $ 40,375.