MUMBAI, 14 Jun (Commoditiescontrol): Nickel prices in London saw a modest rise on Friday, yet they are set to end the week lower for the fourth consecutive week due to increasing inventories. As of 0548 GMT, the three-month nickel contract on the London Metal Exchange (LME) increased by 0.7% to $17,775 per metric ton. Despite this slight gain, the contract has dropped by 1.4% over the course of the week.
LME nickel inventories surged to 86,664 tons, reaching their highest level since February 2022. Concurrently, stockpiles at the Shanghai Futures Exchange (SHFE) warehouses remained at their peak since November 2020, with the latest figures on June 7 showing 26,622 tons.
The increase in stockpiles is attributed to higher production levels of high-grade nickel cathodes by Chinese manufacturers in Indonesia and China, which are deliverable on the LME.
Despite the current downtrend, there is optimism in the market. A Macquarie analyst suggests that nickel prices may have hit a bottom. The anticipated market recovery is expected to be driven by robust demand from the steel sector and a reduction in ore supply surplus following Indonesia's decision to slow down production permits.
In other metals trading on the LME, copper saw a 0.4% increase to $9,830 per ton, tin advanced by 0.3% to $32,885, while aluminium fell by 0.5% to $2,545.50. Zinc also eased by 0.5% to $2,847, and lead inched down by 0.1% to $2,163.
On the SHFE, copper prices declined by 0.3% to 79,790 yuan per ton. Aluminium decreased by 0.6% to 20,630 yuan, zinc fell by 0.6% to 23,630 yuan, lead dipped by 0.1% to 18,605 yuan, and tin dropped by 0.9% to 272,590 yuan.
The mixed performance across different metals highlights ongoing volatility in the commodities market, influenced by inventory levels and production dynamics. Market participants will continue to monitor these factors closely in the coming weeks.
(By Commoditiescontrol Bureau; +91 98201 3018)
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