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Nickel resumed trading on the London Metal Exchange by sliding to its lower limit, while aluminum, copper and other industrial metals prices rise on hopes of more stimulus in China.
LME nickel (LN1:COM) fell 5% to its lower limit after being suspended for a week, but electronic trading was halted due to technical issues; according to Reuters, LME nickel opened at $45,590/ton while Shanghai nickel was 235,200 yuan, or $37,054.
Traders likely are seeking to arbitrage the big gap between LME and Shanghai nickel prices, Saxo Bank’s Ole Hansen tells Reuters.
Meanwhile, three-month aluminum in London (LMAHDS03:COM) recently traded +1.8% to $3,335/ton, and benchmark copper (HG1:COM) +2.2% to $10,119.50.
ETFs: COPX, CPER, JJCTF, JJC, JJU
“We’re seeing metals prices moving higher, which you can understand because tightness is still there,” Hansen said. “The market also liked the news from China that they want to keep markets stable and do what they can to mitigate any risks,” but LME nickel is “on its own, completely dislocated.”
Among other metals, LME zinc (LMZSDS03:COM) +0.7% to $3,824 and lead (LL1:COM) +1% to $2,264, but tin (LMSNDS03:COM) -1.1% to $42,640.
After uncertainty about exports from Russia pushed prices to record high, aluminum futures fell 10% last week.
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