METALS-Nickel hits four-month peak on Indonesia concerns

By Kitco News / July 12, 2019 / www.kitco.com / Article Link


* GRAPHIC-2019 asset returns: (Updates with closing prices)By Eric OnstadLONDON, July 12 (Reuters) - Nickel prices touched theirhighest in four months on Friday on worries that major producerIndonesia will resume an export ban on ore in 2022.Indonesia relaxed the ban in 2017, but said at the time thatit would last only five years and that exports would berestricted again in 2022. Analyst Colin Hamilton at BMO Capital Markets in London saidmany people had been sceptical that the full ban would bereimposed, and a media report about sticking to the ban in 2022created jitters in the market."Of course that wouldn't affect today's availability, butwe've always been heavily dependent on Indonesia in this nickelmarket," Hamilton said."If we were to see Indonesia restrict availability of theirore then it would tighten the market quicker than we'refactoring in."Most analysts expect rising demand for nickel in electricvehicles to create shortages in coming years.Benchmark nickel on the London Metal Exchangeclimbed 2.6% in closing open outcry trading to $13,470 a tonne,the strongest since March 7.

* COPPER IMPORTS: Chinese imports of unwrought copper fell27.2% year on year in June as a slowdown in the world'ssecond-biggest economy continued to weigh on demand for themetal. Shipments of ores and concentrates slid 16.5%, datashowed."That probably reflects availability more than anythingelse. Just look at the Chilean and Peruvian (mine output) data,"said Hamilton, referring to the fall in ore imports.


"There's no tightness at the refined end of the market yet,but there's a raw material constraint and you'd expect it toflow through the chain eventually."
* CHINA TRADE: Also weighing on the metals market wasdisappointing wider trade data from top metals consumer China.China's overall exports fell in June as the United Statesramped up trade pressure, while imports shrank more thanexpected, pointing to further weakness in the world'ssecond-largest economy and slackening global growth.
* DOLLAR: The dollar index pared losses after U.S.producer prices rose slightly in June, pointing to moderateinflation. A weaker dollar often boosts metals prices, makingthem cheaper for buyers using other currencies.
* TIN SPREAD: LME cash tin's discount to the three-monthcontract moved to $48 a tonne, the strongest sinceFebruary 2017, against a premium of $230 in mid-June. Thisfollows a sharp rise in LME tin inventories, evidence of amplesupplies of the metal.
* PRICES: Three-month LME copper fell 0.3% to finishat $5,935 tonne, giving up gains after touching $5,998, thehighest since July 1.


Aluminium slipped 0.3% to close at $1,822 a tonne,zinc gained 0.5% to end at $2,439, lead added0.2% to $1,976 and tin gave up 0.8% to $18,200.
* For the top stories in metals and other news, click or <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Eric Onstad; Editing by Jan Harvey)

Reuters Messaging: eric.onstad.thomsonreuters.com@reuters.net))

LME price overview COMEX copper futures Base metals news All metals news All commodities news Foreign exchange rates SPEED GUIDES)) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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