London Base Metals (LME) Finished Higher
The base metals prices on the London Metal Exchange (LME) finished overall higher Tuesday.
For months, Nickel prices have been highly dependent on economic signals from China. The weaker Chinese economy has been suppressing demand from local steel producers, pushing Nickel prices lower than ever.
On last trade, nickel prices rose to its highest level in 3 weeks as February imports in China slumped to its lowest levels. Moreover, the recent decline in exports has also affected the investment sector as local and foreign investors shy away from putting money on local assets.
Experts believe that this could imperil Premier Li Keqiang’s seven percent growth rate target for this year, which, in turn, will increase the pressure for creating another economic stimulus from the People’s Bank of China (PBOC).
Every down tick in Chinese data is matched by expectations of stimulus. If there is stimulus, including infrastructure development, demand for base metals will increase.
LME Nickel traders and investors should also hope for weaker USD for the year so that the entire base metals segment can recover from Bearish prices.
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Nickel the weakest and most precarious commodity segment in the base metals complex
The 3-month unofficial Copper price increased 55, or 0.92%, to 6,002.5/tonne.
The 3-month unofficial Aluminium price increased 18, or 1.03%, to 1,761/tonne.
The 3-month unofficial Lead price lost increased 18, or 0.93%, to 1,944/tonne.
The 3-month unofficial Zinc price increased 35.5, or 1.66%, to 2,173.5/tonne.
The 3-month unofficial Nickel price increased 55, or 0.41%, to 13,430/tonne.
The 3-month unofficial Tin price increased 125, or 0.82%, to 15,400/tonne.
Stay tuned…
HeffX-LTN
Paul Ebeling
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