Low inventions, supply concerns push nickel to three-week high
NICKEL PRICES SURGED TO A THREEWEEK HIGH ON THE LONDON METAL EXCHANGE (LME) as worries over low inventories and potential sanctions against Russia, a major producer of the silverywhite metal, triggered concerns regarding supply.
Benchmark nickel on the LME jumped 0.6 percent above the previous day’s figure to $24,035 a tonne, having earlier in the session touched its highest since January 24 at $24,140 a tonne.
Market participants observed that there has been a shortage of nickel on the LME, adding that a lot more nickel is due to leave
LME-registered warehouses as metal earmarked for delivery at 52 percent indicates that more nickel is due to leave the LME system.
Analysts also noted that demand for the metal used in producing rechargeable batteries that power electric vehicles has been strong for some time and is among the reasons behind the depletion of stocks and rising valuation.
However, it was a bearish market for most base metals on the LME as aluminium lost 0.2 percent to $3,262, zinc slipped 0.5 percent to $3,588 a tonne, lead shed 0.5 percent to $2,335.
On the other hand, copper climbed 0.5 percent to $9,978 a tonne,while tin gained 0.1 percent to $43,901 a tonne.
Tin had earlier in the week hit a record high at $44,370 a tonne on worries about supplies falling significantly short of demand in 2022 due to pandemic-related disruptions and logistical problems among top producers.