Nickel hits 14-year high on Chinese demand

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Last updated at: (Beijing Time) Thursday, December 25, 2003

Nickel hits 14-year high on Chinese demand

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Base metal prices had another run up to fresh multi-year highs on Wednesday as the small amount of buying in quiet trade ahead of Christmas was enough to nudge nickel to a fresh 14-year high and a near seven year high for lead.

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Nickel prices burst through the $16,000 a tonne level on the London Metal Exchange for the first time since June 1989. The benchmark three-month LME nickel price advanced $350 to peak at $16,050. The nickel price is now less than than 20 per cent below its record high of $19,000 a tonne reached in 1988.

Nickel has recorded the strongest rise of all exchange traded metals so far in 2003 driven mainly by robust Chinese demand for the metal, which is mainly used for stainless steel manufacturing. LME nickel prices have jumped 120 per cent this year.

The three-month LME lead price broke the $700 a tonne level for the first time since March 1997, it peaked at $706 up $11 on the day. Lead prices have risen more than 55 per cent this year.

Aluminium came within $3 of breaking the $1,600 a tonne level, a point not visited since February 2001. The three-month LME aluminium price gained $19 to $1,597, to cap a 16 per cent gain this year.

The three-month zinc price remained above the $1,000 level, a point it broke through on Tuesday for the first time since February 2001. Zinc prices are up 30 per cent so far this year.

The three-month tin price remained near seven year highs, up $60 to $6,330 a tonne, just $40 shy of its peak. A level that it last reached in April 1996. Tin prices have advanced more than 40 per cent this year.

The three-month copper price was near its seven year high, up $7 to $2,244 a tonne.

Precious metals were also firmer, but off record breaking levels. Gold was slightly up, quoted at $411.05/$411.85 a troy ounce, compared with the late quote in New York on Tuesday of $410.40/$411.25. The London morning fix was $410.80.

Platinum was fixed at $812.00 a troy ounce, recovering from their brief dip below $800 on Tuesday.

Crude futures were flat to firm in quite trade. IPE Brent for February delivery closed up 1 cent to $29.05 a barrel in in London. February Nymex WTI gained 9 cents to $32.04 a barrel.

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