Base metals prices on the London Metal Exchange were predominantly lower during morning trading on Monday February 11, with nickel the only metal to trade in positive territory, while continued strength in the dollar index fuels selling momentum.
Chinese market participants have returned from their week-long Lunar New Year break. Yet despite a return of Chinese stimulus resulting in higher volumes traded over the morning, base metals remain in a downtrend amid macro fears and broad strength in the dollar index, which is nearing the psychological level of 97. Ticking marginally higher so far this morning, nickel's three-month price continues to trade around $12,600 per tonne. But the price has fallen 5.6% from the six-month high it reached last week of $13,350 per tonne. Higher iron ore prices after the rupture of one of Vale SA's tailings dam in Brazil are contributing to robust price action in nickel futures, and the metal's strong consumption as a downstream component in the stainless steel sector has led to upticks in nickel's three-month price. "China has returned to the market after its New Year festivities. Some commodities on the...