From London Metal Exchange:
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Dow Jones news
wire:<http://www.alaron.com/news.aspx?action=story&cID=ALARON&iFSNi=i4747775957165801536>
By Lisa Yuriko Thomas
DOW JONES NEWSWIRES
LONDON (Dow Jones)--London Metal Exchange nickel surged to a fresh record
high Wednesday alongside price rises across the entire complex, and traders
expect market fundamentals to continue dictating price direction.
Three-month nickel jumped to a fresh record high of $42,350 a metric ton due
to short-covering and light speculative buying as stocks remain at critically
low levels.
The stock fall Wednesday morning by 162 tons to 3,648 tons, although a small
drawdown, was the impetus for steady short-covering, said an LME trader. "Add
to that trade support at the lows and prices are at new highs," he added.
Although nickel stocks have steadied in the last month, current levels are
down by roughly one half from the start of 2007. With canceled warrants - or
material accounted for and to be drawn down at a later date - at 37% of global
LME inventories Wednesday, available nickel stocks comprise less than a day of
global consumption.
Base metals across the board jumped Wednesday in line with other financial
markets. Spot gold pushed through the key psychological resistance of $650 a
troy ounce Wednesday due to gains in crude oil prices and the weaker dollar
against the euro.
Moreover, the rebound in the base metals complex wasn't a surprise as the
market tried to recover from its jitters after a recent sharp fall in equities,
Michael Skinner of Standard Bank said.
The downward pressure from outside markets has subsided and allowed
fundamentals to reassert themselves, said the LME trader.
U.S. stocks were largely flat Wednesday after European stock markets were
modestly higher and the Nikkei fell overnight.
Meanwhile, both copper and aluminum climbed on technical buying, said the
trader. A push through copper's 10-day moving average of $6,090/ton triggered a
wave of buying to push the metal above $6,100/ton, the trader said, adding that
$6,200/ton could be hit in the coming few days.
In other metals, tin extended its recent rise to trade above $13,700/ton as
supply concerns continue and stocks fell 30 tons to 10,160 tons Wednesday.
Overall LME inventories have fallen roughly 20% since the start of 2007.
At the same time, Indonesian news reports Wednesday said the government will
impose a quota on tin exports to help maintain a global market price for the
metal above $12,000/ton. However, the report failed to provide further details
on what the quota's volume might be or when it might be imposed.
Last October, Indonesia, which supplies about one third of the world's tin,
closed dozens of small-scale smelters that together produce about half the
country's annual tin output on allegations they were purchasing tin ore
illegally, damaging the environment and evading taxes.
Prices in dollar a metric ton.
3 Months Metal Bid-Ask Change from
Tuesday PM kerb
Copper 6140.0-6150.0 Up 165
Lead 1850.0-1855.0 Up 30
Zinc 3355.0-3360.0 Up 46
Aluminum 2729.0-2730.0 Up 35
Nickel 42000.0-42005.0 Up 1600
Tin 13600.0-13605.0 Up 325
Aluminum Alloy 2220.0-2230.0 Up 25
Aluminum Alloy 2160.0-2170.0 Up 10
(NASAAC)
-By Lisa Yuriko Thomas, Dow Jones Newswires; +44 (0)20 7842 9410;
[EMAIL PROTECTED]
(END) Dow Jones Newswires
03-07-07 1247ET
Copyright (c) 2007 Dow Jones & Company, Inc.
DJ info: 82050
