LME nickel ends sharply lower on profit-taking; Tin up
Source: Hoovers
metalsplace.com
London Metal Exchange nickel took center stage Friday as fund long liquidation sent prices tumbling 6%, and the weakness could extend to early next week as buyers opt to stay on the sidelines, said traders.
Three-month nickel fell to a low of $42,100 a metric ton, down over 6% as fund liquidation and profit-taking ahead of the weekend and the end of the quarter next week weighed on prices, said traders. Nickel has fallen some 12% since hitting a record high of $48,500/ton last week.
If prices break below the $42,000/ton level, the next level of support is $39,000/ton, said one London trader. "There's fear that Friday's big fall may chill buyers interest for next week," the trader added.
Adding to downward pressure, LME inventories are up almost 30% since mid-February levels, but they still only account for a little over one day's worth of global nickel consumption.
UBS said in a daily report that speculation was rife that the recent increase in LME nickel stocks was due to deliveries by Norilsk Nickel, of full plate into Rotterdam warehouses, and by Jinchuan, of full plate into Busan warehouses.
In other metals, three-month tin surged to a record high of $14,345/ton earlier Friday due to falling inventories that have fallen some 24% from the start of 2007.
Supply issues have been ongoing since October, when the Indonesian government closed a number of small smelters over allegations they were purchasing tin ore illegally, damaging the environment, and evading taxes.
Three-month copper was also able to hold up against the weakness seen in nickel due primarily to a sharp drawdown in LME copper stocks Friday. The metal pushed up above $6,800/ton before retreating to a PM kerb of $6,720/ton.
Given the return of Chinese buyers to the market, copper prices have appreciated strongly during the past few weeks, said Michael Widmer of Calyon.
LME copper stocks have fallen over 10% from month-ago levels.
Prices in dollar a metric ton.
3 Months Metal Bid-Ask Change from
Thursday PM kerb
Copper 6720.0-6721.0 Unch
Lead 1900.0-1901.0 Dn 20
Zinc 3150.0-3155.0 Dn 50
Aluminium 2762.0-2763.0 Dn 16
Nickel 42195.0-42200.0 Dn 2955
Tin 14325.0-14350.0 Up 325
|
