Nickel's three-month price on the London Metal Exchange continued to trend lower during morning trading on Friday February 8, with the metal's midweek surge largely attributed to a sharp rise in iron ore prices while consumer demand remains hampered by a dearth in Chinese stainless steel production.
Nickel's three-month price has since corrected itself during the latter part of the week, falling more than 4% from its weekly high of $13,350 per tonne to $12,775 per tonne this morning, against a backdrop of weakening risk-appetite and continued strength in the dollar index. Conversely, open interest in nickel futures has ticked higher this week, with total positions pushing above 28,000 for the first time since January 15, while the metal's forward curve has widened into a cash/three-month contango of $83 per tonne, from $40 per tonne in mid-January. Elsewhere, both zinc and lead futures remain incongruous with tightening fundamentals typified in decade-lows in LME inventory. Both metals also rallied earlier this week, climbing to levels...