Nickel rises as greenback slips, steel prices rally

LONDON — Nickel touched its highest level in more than two weeks on Monday, supported by a softer dollar and higher steel prices, while shrugging off weak data from top metals consumer China.

Benchmark nickel on the London Metal Exchange (LME) ended 4% higher at $ 11,015 per ton, its highest level since Sept. 21 and its biggest intraday jump since Aug. 16.

Higher steel prices offset data showing activity in China’s services sector grew at its slowest pace in 21 months in September, casting doubt on the economic growth of the world’s top metals consumer.

“A bit surprising increase in prices given the weaker Chinese data,” said ETF Securities commodity strategist Nitesh Shah, adding the market was also monitoring news on fresh supply from Indonesia and the Philippines.

Nickel markets are heavily influenced by steel prices since the metal is mainly used in the steel sector.

Chinese steel rebar futures jumped nearly 3% as investors anticipated production cuts in the world’s top steel producers.

Nickel stocks in LMEregistered warehouses fell by 1,638 tons to 384,864 tons while on-warrant stocks — those earmarked for delivery — fell 576 tons to 249,336 tons. Indonesia’s mining minister said a “special mining permit” that was allocated to Freeport Indonesia earlier this year had been extended for the next three months.

The dollar index edged lower on Monday against a basket of major currencies, supporting commodities priced in the greenback.

LME zinc edged down 0.10% to $3,233 per ton, but was still close to a 10-year-high it hit last week as steel prices strengthened.

Concerns about dwindling supply have lit a fire under prices as the closure of several giant mines in recent years has crimped production of the refined metal.

But on Monday on-warrant stocks of zinc in LME-registered warehouses edged up by 9,050 tons to 122,725 tons.

A shortage of immediately available metal in LME warehouses pushed the premium for LME cash zinc over the threemonth contract to over $60 a ton, near 10-year highs touched last month.

Three- month copper ended barely changed on Friday’s close at $6,665 per ton after touching a near four-week high on Friday.

Among other base metals, aluminum added 0.90% at $2,173.50 per ton, lead slipped 0.80% to $2,512 a ton while tin rose 1% to $20,770 a ton. —