Hello Sam
Interesting article:
Nickel advances, others stagnant in LME pre-market
Reuters Story - September 15, 1998 06:40
LONDON, Sept 15 (Reuters) - Nickel rose in the London Metal Exchange pre-market on Tuesday, after news of mining cutbacks in Western Australia, while the other base metals were largely little changed and quiet, dealers said.
Nickel was quoted at $4205/$4220 a tonne at 1005 GMT, up $87 from Monday's afternoon kerb close.
The metal rose to trade as high as $4,255 after WMC Ltd said it was reducing production by 10,000 tonnes at its three Kambalda mines due to low world nickel prices.
The Wannaway mine will be shut in October, Blair in November and Otter/Juan in January, a WMC spokesman said.
The advance in nickel, which has recently been near five year lows due to waning stainless steel demand especially in Asia, was rapidly capped by profit-taking around $4,220/$4,230 by some of those who went long during dips on Friday and Monday.
Dealers said the WMC news would have little lasting influence on prices which would now only be boosted by some major difficulties in developing new low-cost laterite resources or by serious interruptions to Russian supply.
"This market reflects overproduction and new low-cost mines, it doesn't give a damn about consumption growth, cutbacks, closures, summer shutdowns...sentiment is bearish," a dealer said.
Copper little changed, quoted up $2 at $1.670/74 by 1017 GMT, amid a continued near absence of trade business during the morning.
Significant stock rises resumed after Monday's respite, with 6,925 tonnes coming into LME warehouses chiefly in Rotterdam and Singapore, but this failed to cause an immediate stir.
Most analysts were looking to the downside, with $1,660/65 cited as support.
Some market attention was again focussed on renewed speculation that China may feel obliged to devalue its currency, analysts said.
Aluminium was barely changed, indicated $0.50 down at $1,367/$1,370. LME stocks rose by 3,900 tonnes, with 4,825 going into Helsingborg and some small withdrawals in various European centres. LME brokers Rudolf Wolff said technical indicators were drifting lower and anticipated tests of support at $1,360 and the 30-day moving average at $1,355, while other analysts also anticipated a downward drift.
Lead was $1.50 firmer, quoted at $527/$528 at 1013 GMT while zinc gained $7.5 to $1,042/45 against a background of a 3,000 tonne decline in stocks.
Tin appeared to still be finding support at $5,400 despite dipping below that level during Monday trading. It was quietly indicated at $5,400/10, up $5.
Forward tightness, with cash/threes at a backwardation of $170/$190 was also giving support and some technical analysts said tin was ripe for gains.
Aluminium alloy was very quiet, indicated a shade softer at $1,170/$1,180.
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