The three-month nickel price trading on the London Metal Exchange continued its upward momentum on Wednesday March 6, while the other base metals prices were mostly lower with continued strength in the dollar index limiting price rallies.
Nickel's three-month price has recorded a weekly incline of more than 5% and is keeping above $13,600 per tonne, while open interest on the exchange has pushed higher this week to 274,624 open positions. LME nickel stocks remain at a five-year low below 200,000 tonnes and LME data continues to show dominant warrant holding positions across 30-39% of warrant holdings, tomorrow/next and cash positions. While copper consolidated lower over the morning, the metal's futures price action remains well supported near $6,500 per tonne, a level it continues to trade either side of. Total on-warrant copper material remains just above 26,000 tonnes, hovering around its lowest levels since 2005. Despite strong buying and low LME stocks, the metal's forward spreads remain tight, with cash/three-month trading in a $71.50 per tonne backwardation, while the cost of borrowing copper overnight, or tom/next, remains at $5 per tonne. Volumes traded remain thin over the...