The three-month copper price climbed up $37 per tonne while it continues to consolidate at higher levels. Nickel prices rallied $115 per tonne amid strong fundamental support and a pick-up in demand from steel markets as a result of rising steel prices.
“Purchases [of nickel] from steel markets will increase after the cautious, watchful attitude seen in the market before [China’s] Golden Week holiday since steel prices have risen as a result of supply constraints in China,” an analyst at Guotian Jun’an said.
Zinc prices edged higher this morning after falling 2.2% yesterday. Despite increasing stocks, zinc spreads are in high backwardation with cash/three-months at $76 per tonne. LME warrant holdings data also shows a significant dominant holder in the market.
“The massive re-warranting of LME stocks is a response to the wide backwardation. It won’t stop before the backwardation comes off,” a trader said.
Zinc inventories on the LME increased a net 68,800 tonnes in September and have continued to rise in October, with an increase of 7,875 tonnes, 2,200 tonnes and 6,550 tonnes between October 9 and October 11.
The three-month aluminium price also edged higher with over 6,000 tonnes of freshly cancelled stock in Rotterdam. Lead and tin prices were trading in negative territory this morning.
“Although the underlying trends in the base metals are upward, the metals in or near high ground are having to absorb selling, which is capping the upside and leading to some pullbacks,” Metal Bulletin senior analyst William Adams noted. Copper moves higher
Base metals prices
Currency moves and data releases