Traders will keep a close eye on LME stock levels after nickel prices fell Tuesday on profit-taking driven by a large increase in stocks, said analysts.
Meanwhile, the markets await the Federal Reserve's interest rate decision, due at 1915 GMT, and comments for further clues over the U.S. economy's health, analysts added.
Nickel was on the defense Tuesday as a large increase in stocks and canceled warrants gave an excuse for the longs to take profits, said Robin Bhar of UBS. Tin and copper also fell on a bit of profit-taking, Bhar said, adding the markets were otherwise quiet and thin.
LME nickel rose to a high of $33,999 a metric ton before retreating to a PM kerb of $32,800/ton. Stocks rose 414 metric tons to 6,408 tons, according to the LME.
The Fed is expected to maintain rates at 5.25%, but analysts have said they will be watching for comments on whether it will continue to target inflation as its main concern over a possible sharp downturn in the economy. This may give the dollar a near-term boost.
Elsewhere in the LME, tin prices have come off their recent record highs on profit-taking but remain above $10,000/ton driven by ongoing supply concerns over Indonesia's tin production after a clampdown on independent smelters.
The metal fell over 2% from Tuesday's high of $11,100/ton to a PM kerb of $10,825/ton.
Zinc prices rose modestly due to the possibility of strike action from Dec. 19 at Peruvian zinc miner Volcan Compania Minera SAA.
Despite a drawdown in copper stocks and ongoing supply concerns, copper prices fell from Tuesday's high of $6,955/ton to a PM kerb of $6,845/ton.
Labor contract negotiations continue at Xstrata's Altonorte copper smelter in Chile after labor leaders await a new contract offer from company management.
3 months metal (prices in dollars a ton)
Bid – Ask, Change from Monday PM kerb
Copper 6845.0-6850.0 Dn 75
Lead 1727.0-1730.0 Dn 33
Zinc 4375.0-4380.0 Up 25
Aluminium 2805.0-2807.0 Up 9
Nickel 32800.0-32805.0 Dn 1125
Tin 10825.0-10850.0 Dn 225
豫公网安备41010502003434号