Nickel’s three-month price has recorded a weekly incline of more than 5% and is keeping above $13,600 per tonne, while open interest on the exchange has pushed higher this week to 274,624 open positions.
LME nickel stocks remain at a five-year low below 200,000 tonnes and LME data continues to show dominant warrant holding positions across 30-39% of warrant holdings, tomorrow/next and cash positions.
While copper consolidated lower over the morning, the metal’s futures price action remains well supported near $6,500 per tonne, a level it continues to trade either side of. Total on-warrant copper material remains just above 26,000 tonnes, hovering around its lowest levels since 2005.
Despite strong buying and low LME stocks, the metal’s forward spreads remain tight, with cash/three-month trading in a $71.50 per tonne backwardation, while the cost of borrowing copper overnight, or tom/next, remains at $5 per tonne.
Volumes traded remain thin over the...