Volumes traded in nickel were moderately high over the day, with more than 9,000 lots exchanged by the close, second to copper’s 11,700 lots traded.
Upward price momentum in nickel was partly fueled by this morning’s fresh cancelation of 4,500 tonnes across LME-registered warehouses in Europe and Asia, while total LME stocks were at their lowest since 2012, at 163,122 tonnes.
In addition, nickel’s forward spreads were now trading in a supportive contango, recently seen at $72 per tonne for cash/three-month. Nickel spreads moved into their widest backwardation since 2015 last month, flipping to a $39 per tonne backwardation in cash/three-month.
“We maintain our view...