Shanghai nickel soared by another 5.4 percent to mark its highest close in more than two years on Thursday, tracking an earlier rise in London nickel on expectations of new demand from electric vehicles (EVs). Shanghai Futures Exchange copper closed down 0.3 percent. Shfe zinc ended down 1.3 percent and aluminium fell by 0.9 percent.
Battery makers are increasingly turning to nickel to help power growing global electric car sales, analysts and executives say. Celia Wang, a nickel analyst at Grandflow Resources in Shanghai, said the rally was due to positive sentiment on demand for the metal at the LME Week conference in London.
"All traders think the EV story will bring a bright future for nickel, especially funds," she said. Shanghai nickel, which had jumped by its 6 percent limit on Wednesday, rallied further to finish at 101,450 yuan ($15,374.94) a tonne, its highest close since June 2015. LME nickel, which had hit its own highest in more than two years above $13,000 a tonne on Wednesday, was down 0.2 pct at $12,765 a tonne at 0704 GMT.
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