LONDON: Nickel advanced Tuesday to its highest level since at least 1987 as dwindling supply levels created a shortfall of the metal used in production of stainless steel. Lead rose to a record, and aluminum advanced to a six- month high.
Nickel stockpiles monitored by the London Metal Exchange gained 2 percent to 6,336 tons, according to the exchange's daily report. Still, inventory has plunged 82 percent this year and on Tuesday was below two days' worth of global consumption.
"The prospects of tighter markets will underpin still-high prices in this period," Robin Bhar, an analyst at UBS, wrote in a report Tuesday.
Nickel for delivery in three months gained $600 to $34,300 a ton. Earlier, it rose to $34,500 a ton, beating the previous high, set Friday, by $200.
Prices have more than doubled this year as Chinese makers of stainless steel expanded production capacity. Goldman Sachs forecast that prices for immediate delivery would average $25,000 next year, 33 percent more than its previous estimate.
The global supply shortfall will be 20,000 tons this year, the bank said in a report Friday.
Two of the largest nickel-mine developments have been delayed, prolonging the supply shortfall. BHP Billiton said last week that its Ravensthorpe mine would take up to a year longer to develop. Vale do Rio Doce said in November that it would start up its Goro mine in New Caledonia in 2008, a year late.
Aluminum gained after data showed demand had increased, renewing speculation that supply may lag behind demand this year.
Aluminum for delivery in three months on the LME gained $28 to $2,840 a ton. That close was its highest since May 23.
The contract traded at a record $3,310 on May 11.
Crude oil for January delivery rose 41 cents to $62.85 a barrel in afternoon trading on the New York Mercantile Exchange.
Gold futures for February delivery were off $3 to $647.90 an ounce in New York.
豫公网安备41010502003434号