“The much anticipated return of the Chinese traders had the desired and expected effect as value bids helped bolster prices that have been slumping,” Marex Spectron said.
Nickel was the strongest performer this morning, recovering 1.2% to climb briefly back above $14,000 per tonne.
“Considering all of its fundamental dynamics, nickel still has a lot of upside to offer in 2018. The metal has another market deficit in store and underlying global demand has remained fairly robust,” Metal Bulletin analyst Andy Farida said.
Aluminium prices have been boosted by further cancellations at LME-listed warehouses with 44,900 tonnes cancelled this morning, the majority in Port Klang. The softening of US sanctions against Russian aluminium producer UC Rusal and an extended deadline for Europe’s exemption from US tariffs could have put pressure on the three-month aluminium price but it remains well supported by falling available stock levels on the exchange.
“Aluminium is still in a place of uncertainty – we are still seeing deliveries out and cancellations. It is very sensitive to any news regarding Rusal but for now there is enough to support prices,” a trader said.
On-warrant LME stocks have fallen 11% since the Rusal sanctions announcement by the US Department of the Treasury on April 6.
The rest of the complex followed suit with the majority of prices recovering well after a weaker day on Tuesday where the stronger dollar weighed on the complex.
Zinc continued to recover from its dip earlier this week and pushed back above $3,100 per tonne to recover from Tuesday’s six-month low, while sister metal lead also pushed higher.
Tin was the only base metal to buck the trend – falling $35 per tonne but the cash/three-month spread is tightening – down from over $250 per tonne backwardation a week ago to $135 per tonne this morning.
Base metals up; tin bucks trend
Currency moves and data releases