LIVE FUTURES REPORT 07/01: Dollar weakness provides buying momentum in LME base metals; nickel rally continues

Base metals prices on the London Metal Exchange were mostly higher during morning trading on Monday January 7, with continued weakness in the dollar index spurring buying momentum amid market optimism around US-China trade talks scheduled later today.

Zinc’s three-month price gained 1.3%, making further strides towards $2,500 per tonne. A fresh cancelation of 7,800 tonnes kept price action elevated. The metal’s nearby forward curve continues to exhibit tightness - the cash/three-month spread was in a $65.25 per tonne backwardation, narrowing from its widest backwardation in more than 10 years in December at $124 per tonne. Similarly, a continued drawdown in LME stocks boosted nickel’s three-month price to an intraday high of $11,195 per tonne, up 5% from last week’s low of $10,630 per tonne on December 31. “Nickel has been in a downtrend since June 2018 but has started a breakout from the downtrend; however,...

Published

Hassan Butt

January 07, 2019

10:51 GMT

London