Nickel prices rose the most in three weeks after Indonesia said a ban on exports of unprocessed ore remains in place, reinforcing concern that global demand is set to exceed supplies.
Today, Bambang Adi Winarso, senior adviser to the coordinating minister for economic affairs, affirmed the policy by Indonesia, the world’s largest producer of mined nickel ore. Residential-construction permits in the U.S. climbed in October to a six-year high, the government said. Copper, aluminum and lead prices rose.
“Strong U.S. data, combined with supply concerns from Indonesia, is pulling nickel higher,” Tim Evans, the chief market strategist at Long Leaf Trading Group, Inc. in Chicago, said in a telephone interview. “We are seeing some buying across base metals.”
Nickel for delivery in three months on the London Metal Exchange advanced 3.2 percent to $16,149 a metric ton at 4:50 p.m. A close at that price would mark the biggest jump since Oct. 28. Through yesterday, the commodity rose 13 percent this year.
Citigroup Inc. yesterday forecast a global deficit of 62,400 tons in 2015, expanding to 103,600 tons in the following year. “Inventories of nickel in all its various forms have fallen in China, with supply now falling as well in the form of a seasonal decline in Filipino exports,” the bank said. “Optimism remains strong toward nickel prices for 2015.”
Copper rose 0.8 percent to $6,681.50 a ton ($3.03 a pound) in London. Zinc and tin climbed.
On the Comex in New York, copper futures for March delivery rose 1.1 percent to $3.0245 a pound. Trading was 64 percent above the 100-day average for this time, according to data compiled by Bloomberg.
Through yesterday, the price dropped 12 percent this year.
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