LONDON: Nickel price strikes new record high 37,349 dollars

Nickel prices surged to an all-time peak above 37,000 dollars in London trading owing to concerns over dwindling stockpiles of the metal.

Tin also reached an historic high Monday, close to 12,000 dollars, on supply concerns.

A tonne of nickel for delivery in three months climbed to 37,349 dollars on the London Metal Exchange (LME), which is the world’s leading metals futures market.

It was the highest reading for nickel since the start of its quotation on the LME in 1979. Nickel prices have soared 180 percent since the start of 2006.

Nickel is winning support from the low level of stocks of the metal on the LME, where inventories have dived by 85 percent in one year.

The metal, which is used to help prevent corrosion, is profiting also from the threat of an imminent strike by staff working for mining giant Xstrata in Sudbury, Canada.

“The focus (across base metals) has shifted on to nickel… with stocks very low,” UBS analyst Robin Bahr said.

He added that the metal was on course to reach 40,000 dollars per tonne.

Elsewhere, the price per tonne for delivery of tin in three months reached 11,850 dollars Monday, the highest level since 1989 when the metal was re-introduced on the London market.

Tin prices are bouncing higher due to a fall in output from Indonesia, which is the world’s second biggest producer of the metal.

This comes after the recent move by Indonesian authorities to shut about 30 illegal tin smelters.

Source: AFP