Nickel prices fell on Thursday, with the London contract hitting its lowest level in more than two-and-a-half years, as a lingering oversupply pressured any price rally.
Three-month nickel on the London Metal Exchange fell as much as 0.6% to $16,335 per metric ton, the lowest since April 2021, before rebounding slightly to $16,405 by 0349 GMT, still a 0.2% decline.
The most-traded December nickel contract on the Shanghai Futures Exchange shed 3.2% to 127,790 yuan ($17,721.29) a ton.
Earlier in the session, the contract dropped 4.2% to 126,440 yuan, the lowest since September 2022.
LME nickel has lost 45% and SHFE nickel has shed 37% year-to-date, the worst performers across the base metals complex on both exchanges.
The global nickel market had a surplus of 155,000 tons in the first nine months of this year, up from a surplus of 60,500 tons a year ago, data from the International Nickel Study Group showed.
A supply surge from Indonesia has outpaced demand, causing the surplus.
LME copper rose 0.3% to $8,382 a ton, aluminium advanced 0.4% to $2,226.50, zinc climbed 0.5% to $2,508, and lead increased 0.3% to $2,227.50.
LME nickel jumps 6pc, with focus on large short position
A weaker dollar index helped make greenback-priced metals cheaper to holders of other currencies.
LME tin eased 0.1% to $24,645. SHFE copper fell 0.3% to 67,960 yuan, aluminium declined 0.4% to 18,785 yuan, zinc shed 0.8% to 20,910 yuan, lead lost 1.5% to 16,550 yuan, and tin dropped 1.4% to 204,690 yuan.
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