Nickel Tops $20,000 in Biggest Weekly Gain Since 2009 on Supply

Posted on May 10, 2014 by Nanthakumar Victor Emmanuel, P.Eng Leave a comment

Nickel rallied to a two-year high, exceeding $20,000 a metric ton, as a plant closure in New Caledonia by Vale (VALE5) SA, the second-biggest producer, exacerbated global supply concerns fueled by Indonesia’s ore-export ban.

The contract for delivery in three months on the London Metal Exchange added as much as 5.6 percent to $20,500 a ton, the highest level since February 2012, and was at $20,370 by 4:02 p.m. in Tokyo. The metal, used to make stainless steel, rose 12 percent this week, the most since April 2009.