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Shanghai nickel, tin rally to multi-month highs on supply fears

Tan KW
Publish date: Mon, 22 Apr 2024, 04:44 PM
Tan KW
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BEIJING Prices of Shanghai nickel and tin jumped on Monday to multi-month highs, driven by a tighter supply outlook in China, the world's top consumer of both metals.

The most-traded June nickel contract on the Shanghai Futures Exchange (SHFE) jumped as much as 6.5% in early trade, before paring some gains and closed day-time trade at 3.1% higher at a six-month high of 143,580 yuan .

SHFE tin was up as much as 7.3%, finishing day-time trade 3.1% higher at 276,010 yuan, its highest since May 2022.

Nickel was boosted by market talk last Friday that China's stockpiler, the National Food and Strategic Reserves Administration, was planning to buy nickel pig iron, the main feedstock for stainless steel, industry sources said.

Bans on metals from Russia, one of the world's main suppliers for nickel and aluminium, by Washington and London also raised concerns of global supply disruptions.

Exports of tin and nickel from Indonesia continued to slide over delays in approvals of annual work plans for mining companies.

China's March imports of refined tin fell 75% year-on-year, whereas that for nickel ore dropped by 43% and refined nickel fell 56%.

The slow supply from Myanmar and Indonesia underpinned prices, amid expectations of growing exports from China given the higher global prices, said analysts at Guotou Anxin Futures.

Three-month nickel on the London Metal Exchange (LME) retreated 1.3% to US$19,075 per ton by 0719 GMT, having hit its highest level in seven months in early trading.

LME tin fell 1.8% to US$34,950 a ton, copper steadied at US$9,881.50, aluminium dipped 0.3% to US$2,661.50, zinc lost 0.8% to US$2,829, and lead fell 1.3% to US$2,189.

SHFE aluminium was up 0.7% at 20,520 yuan a ton, copper rose 0.7% to 79,550 yuan, zinc shed 0.3% to 22,535 yuan, and lead slipped 1.9% to 16,920 yuan.


  - Reuters


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