The three-month nickel price hit a fresh two-and-a-half-year high at $13,200 per tonne yesterday above $13,000 per tonne, but could not sustain the rally for a second day.
“A large overhead tail on yesterday's candlestick suggests the run higher in prices encountered overhead selling,” William Adams, Metal Bulletin analyst, said.
“Much like the rest of the base metals, we feel nickel prices have already run up considerably. It may now take more evidence of supply shortages, in the form of stock drawdowns, before higher prices are justified,” he added.
Copper and aluminium prices also dipped slightly lower as they continue to consolidate at current levels.
The three-month copper price has weakened after news that a union strike...