Metals - Nickel hits fresh high, copper rises on strong Chinese demand

Metals - Nickel hits fresh high, copper rises on strong Chinese demand

	Published : Mon, 12 Mar 2007 13:43 By : Agencies Print this Story

LONDON (AFX) - Nickel surged to a fresh all-time high amid critically low stocks and a high number of cancelled warrants, which represent pledges to take delivery of the metal.

High demand also helped push copper prices higher, as the market paid attention to a fresh report from China, which showed a rise in imports.

Nickel continues 'to outperform on the rallies and losses are being minimised due to the fact that supply concerns and low stocks remain very much to the fore,' said UBS analyst, Robin Bhar.

'We believe that base metals should be well supported by trade interest as the peak demand season moves into full swing.'

Although nickel stocks rose 78 tonnes to 3,948 tonnes, the amount available to the market is just 2,664 tonnes -- less than a day's worth of global consumption.

At 12.20 pm, LME nickel for 3-month delivery was at 43,650 usd a tonne, up from Friday's close of 42,400 usd.

Bhar added that Chinese customs data was 'encouraging' for copper prices. China, the world's largest copper consumer, imported some 240,000 tonnes of refined copper in February compared with 229,000 in January. Encouragingly, imports were higher despite fewer business days in the month as the week-long Chinese Lunar Year celebrations shaved a few days from February.

Stocks stored in LME warehouses were also supportive. Inventories of the metal fell 1,550 tonnes to 201,025 tonnes, said the LME in a daily report.

Copper was up at 6,210 against 6,130 usd seen at Friday's close.

In other metals, tin was at 13,750 usd a tonne against 13,650 usd, aluminium was at 2,745 usd against 2,718 usd, zinc was at 3,285 usd against 3,260 usd, while lead was at 1,850 usd against 1,772 usd.

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