Base metals prices on the London Metal Exchange were predominantly higher during morning trading on Wednesday April 3, improving on continued progress emanating from recent US-Chinese trade talks while persistent strength in the US dollar fails to deter buying momentum.
Nickel's three-month price is now trading comfortable above $13,300 per tonne amid a continued drawdown in the LME's dwindling stock levels, which remain at a seven-year low at just over 180,000 tonnes in total. "Still, LME nickel's price action remains fairly elevated above $13,000 per tonne. Outflows from LME-approved sheds started to pick up in March, with the monthly outflow averaging 1,100 tonnes per day, a contrast to last month's 403 tpd," Fastmarkets analyst Andy Farida said. "With canceled warrants elevated at 67,356 tonnes, it gives the illusion that there is healthy physical demand. While that looks bullish on paper, most market...