London Metal Exchange (LME) nickel hit a three-week high in Monday after China announced a cut in export taxes on some steel products, boosting expectations for nickel demand, but inventories are on a bigger limit, London’s December 18 news.
London time December 18 17:00 (Beijing time December 19 01:00), three-month nickel Rose 2.2%, reported a tonne of 11,830 U.S. dollars, a little earlier on November 27, the highest 11,850 U.S. dollars since. Three-month copper Rose 0.3% and reported $6,905 per ton.
Nickel prices have soared by about 6% since China announced a cut in export taxes on some steel products in Friday.
But Oxford Economics commodities analyst Dan Smith said: “The nickel stock is huge, about the equivalent of 70 days of consumption.” ”
China accounts for about half of global nickel demand, and stainless steel mills consume two-thirds of global nickel demand.
LME nickel stocks are 373,314 tonnes below the level of 470,000 tonnes reached in June 2015, but the inventory level is one-fold in May 2013.
The global nickel market supply gap expanded to 9,700 tonnes in October this year, with 7,500 tonnes revised last month, according to data released by the International Nickel Industry Research Organisation (INSG) in Thursday. The global supply gap for refined nickel expanded to 65,700 tonnes in the first 10 months of this year, 47,400 tonnes in the same period last year. This has helped to cut the oversupply of stock on the exchange.
Basic metals have also been boosted by a weaker dollar, as the fall in the dollar means cheaper goods denominated in dollars for other currency holders.
Three-month copper Rose 0.3% and reported $6,905 per ton.
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In Monday, China’s refining copper production increased by 9.8% to 786,000 tonnes in November, the highest level since December 2014, according to data published by the National Bureau of Statistics.
The three-month lead was 1.4% higher, at $2,561 a tonne, and earlier touched the highest of $2,567 since October. Car battery manufacturers are expected to be strong in winter, boosting lead prices in recent weeks.
Three-month aluminum Rose 0.4%, reported 2,074 U.S. dollars;
Three-month zinc fell 0.3% to $3,196;
Three-month SN + 1%, reported $19,350 per ton.