Lunni's rise is supported by supply concerns and falling inventories.

Published: Feb 19, 2022 09:10 (GMT+8)

London nickel futures rose on Friday, supported by falling inventories. In addition, fears of reduced supply have been heightened by concerns about possible sanctions against Russia.

Nickel for three-month delivery on the London Metal Exchange (LME) is now up 0.9 per cent to $24090 a tonne, hitting its highest intraday price since Jan. 24, at $24140 a tonne.

Nickel climbed 3.7% in the week and is expected to record the biggest weekly increase in four weeks this week.

The 2203 contract for nickel futures on the Shanghai Futures Exchange rose 2.7% to 177890 yuan per ton.

"Nickel and aluminium are the most affected industrial metals, with Russia contributing 6 per cent of total production," said Soni Kumari, an analyst at ANZ (ANZ). "

It added that if there is a solution to the conflict, the risk premium in the nickel and aluminum markets will be reduced to some extent, but prices are unlikely to be significantly revised.

LME nickel stocks continued to fall to 83328 tons, according to exchange data released on Friday. LME spot nickel three-month nickel premium rose to $368 a tonne on Thursday.

Analysts say Indonesia's export restrictions and environmental, social and governance (ESG) responsibilities related to Indonesian production are important factors contributing to the tightening of market supply.

Other metals, LME three-month aluminum is now up 0.1% to $3272 a tonne, the weekly line is expected to record the biggest weekly increase since January.

Copper for delivery in three months rose 0.6% to $9991.50 a tonne. Three-month lead rose 0.1 per cent to $2348, zinc rose 0.9 per cent to $3639.50 a tonne, and tin rose 0.6 per cent to $44100 a tonne.

Shanghai aluminum closed up 0.8% to 22840 yuan per ton, Shanghai copper closed at 71890 yuan per ton, up 0.7%, Shanghai zinc closed up 1.1% at 25275 yuan per ton, Shanghai lead rose 0.2% to 15470 yuan per ton, and Shanghai tin closed up 1.8% at 340010 yuan per ton.

Sales of copper wire and copper cable (domestic sales and exports) in Japan in January increased 0.5% from the same period last year to 50800 tons, the Japan Wire and Cable Manufacturers Association reported on Friday.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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