SINGAPORE, Oct 23 (Reuters) – Shanghai nickel prices rose on Wednesday, tracking gains overnight in London, buoyed by supply concerns amid falling inventories and following an accident at major nickel producer Nornickel’s mine in Siberia.
The most-traded nickel contract on the Shanghai Futures Exchange (ShFE) rose as much as 4.8% to 132,210 yuan ($18,668.72) a tonne, after benchmark nickel on the London Metal Exchange (LME) climbed 2.5% in the prior session. The Shanghai contract ended up 3% at 129,970 yuan a tonne.
Nickel stocks in LME-approved warehouses MNISTX-TOTAL fell to 87,132 tonnes, hovering around their lowest since November 2011, latest data showed, while ShFE nickel inventories have picked up recently SNI-TOTAL-W.
Three people were killed on Tuesday in an accident at major producer Norilsk Nickel’s Taimyr underground mine in Siberia, raising some supply concerns, but the fear quickly eased after the company said the mine was unaffected.
LME nickel fell 0.6% by 0709 GMT to $16,410 a tonne, after traders and analysts said prices might have been overpriced after hitting a five-year high in September due to an export ban of nickel ore from top producer Indonesia.