Nickel rose in London, leading a rebound in industrial metals, as lower prices attracted investors.
Nickel prices closed at the lowest level since May 2009 yesterday, falling 17 percent this quarter. The metal is heading for a third weekly drop, dinting its 14-day relative strength index close to the level that indicates a potential impending rebound to some analysts who study technical charts. The LME Index of six primary metals touched 2,911 on June 24, the lowest level since June 2010.
“The market looks a bit oversold for now,” William Adams, an analyst at Fastmarkets.com in London, said by e-mail today. “So we would not be surprised to see some bargain hunting and that in turn is likely to trigger short-covering.”
Nickel for delivery in three months rose 1.5 percent to $13,815 a metric ton by 11:14 a.m. on the London Metal Exchange. Copper rose 0.4 percent to $6,760.25 a ton. The metal is down 7.5 percent this month and 10 percent lower this quarter. Copper for delivery in September advanced 0.6 percent at $3.0595 a pound on the Comex in New York.
Industrial metals also gained as the dollar weakened for the first time in seven days against a basket of currencies, reducing the appeal of commodities as an alternative investment.
U.S. gross domestic product expanded at a revised 1.8 percent annualized rate from January through March, down from a prior estimate of 2.4 percent, figures from the Commerce Department showed yesterday. The People’s Bank of China has provided liquidity to some financial institutions to stabilize money-market rates, according to a June 25 release. China and the U.S. are the top consumers of industrial metals.
Tin for delivery in three months rose 1.2 percent to $19,945 a ton on the LME. Tin sales from Indonesia, the world’s largest supplier, may decline to the lowest level in seven years as the country raises purity standards for shipments. Exports will probably drop 20 percent this year to 79,000 tons as new rules take effect from July 1, according to the median of estimates from seven smelter executives and one analyst compiled by Bloomberg.
Copper stockpiles monitored by the LME fell 0.5 percent to 667,425 tons. Canceled warrants, or metal earmarked for delivery, rose to a record 375,425 tons on bookings in Malaysia’s Johor and the Belgian city of Antwerp. A total 1,250 tons of copper was requested at the Dutch port of Vlissingen, which was delisted as a delivery port for the metal last year.
On the LME, aluminum, zinc and lead climbed.
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