Commodity Alert: Nickel and zinc rebound, China demand worries cap gains
Base metals recovered from early morning and traded near days high. Zinc and nickel prices have risen after steep falls late last week while copper prices have stabilised, but gains have been limited by caution over demand outlook from top metals consumer China and stronger US dollar. Tight supplies of immediately available metal raised premium of cash zinc to three-month contract to its highest since 2007 at $US66, which is likely to encourage deliveries into LME warehouses. On-warrant stocks of zinc in LME registered warehouses have fallen by more than 50% this year. Closures of polluting smelters have supported prices, with cities in Anhui province latest to issue plans to curb production in steelmaking, nonferrous smelting, cement and coal-fired power sectors. Worries over stockpiles in South Korean warehouses had driven up discounts of cash nickel, copper and aluminium to their three-month contracts.
Source: Reuters
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