AGL 40.00 Decreased By ▼ -0.01 (-0.02%)
AIRLINK 127.00 Decreased By ▼ -0.99 (-0.77%)
BOP 6.68 Increased By ▲ 0.08 (1.21%)
CNERGY 4.49 Decreased By ▼ -0.11 (-2.39%)
DCL 8.60 Increased By ▲ 0.12 (1.42%)
DFML 41.30 Decreased By ▼ -0.18 (-0.43%)
DGKC 86.71 Increased By ▲ 0.13 (0.15%)
FCCL 32.16 Increased By ▲ 0.02 (0.06%)
FFBL 64.70 Decreased By ▼ -0.72 (-1.1%)
FFL 10.29 Increased By ▲ 0.04 (0.39%)
HUBC 109.51 Decreased By ▼ -0.98 (-0.89%)
HUMNL 14.90 Increased By ▲ 0.15 (1.02%)
KEL 5.05 Decreased By ▼ -0.08 (-1.56%)
KOSM 7.40 Increased By ▲ 0.28 (3.93%)
MLCF 41.39 Decreased By ▼ -0.26 (-0.62%)
NBP 60.60 Increased By ▲ 0.51 (0.85%)
OGDC 190.00 Decreased By ▼ -4.69 (-2.41%)
PAEL 27.81 Decreased By ▼ -0.14 (-0.5%)
PIBTL 7.75 Decreased By ▼ -0.25 (-3.13%)
PPL 149.75 Decreased By ▼ -1.42 (-0.94%)
PRL 26.73 Decreased By ▼ -0.15 (-0.56%)
PTC 16.18 Increased By ▲ 0.18 (1.13%)
SEARL 86.02 Increased By ▲ 7.82 (10%)
TELE 7.72 Increased By ▲ 0.33 (4.47%)
TOMCL 35.58 Decreased By ▼ -0.09 (-0.25%)
TPLP 8.14 Increased By ▲ 0.23 (2.91%)
TREET 16.51 Increased By ▲ 0.62 (3.9%)
TRG 53.35 Increased By ▲ 0.59 (1.12%)
UNITY 26.28 Decreased By ▼ -0.27 (-1.02%)
WTL 1.26 Decreased By ▼ -0.01 (-0.79%)
BR100 9,889 Decreased By -31.1 (-0.31%)
BR30 30,611 Decreased By -140.9 (-0.46%)
KSE100 93,355 Increased By 130.9 (0.14%)
KSE30 28,931 Increased By 46 (0.16%)

Nickel prices fell on Monday as speculators locked in profits by liquidating bullish positions after the market surged to levels not supported by current supply-demand fundamentals. Other industrial metals prices were also in the red, under pressure from a firmer dollar and uncertainty about global economic growth and demand, especially in top metals consumer China.
Prices of nickel, used mostly in making stainless steel, had soared to their highest since June 2018 on Thursday after rising 20% in the previous two weeks. Three-month nickel on the London Metal Exchange fell 3.1% in closing open outcry activity on Monday to $14,300 a tonne. "We're more in a stage of profit-taking rather than aggressive shorting the market. There's a lot of concern because we have a large buyer with deep pockets, and standing in the way of that can be challenging," said Citi analyst Oliver Nugent in London.
He was referring to a Reuters report that Chinese firm Tsingshan Holding Group has been buying large quantities of nickel on the LME to supplement its own output. Nugent said Citi forecast prices would ease back to $13,500 a tonne in the fourth quarter based on supply/demand fundamentals and marginal prices, but in the meantime prices could be volatile.
"Flows can dictate the direction of the market as long as that position is funded. The question is do the flows come back with full force or are things allowed to settle?" LME nickel inventories carved out a fresh low since January 2013, data showed, having shed about 30% so far this year.
Steelmaking ingredients nickel and zinc were weighed down by losses in the Chinese ferrous complex, where benchmark Dalian iron ore futures fell 1.6%. The discount of cash LME zinc to the three-month contract sunk to $11.50 a tonne by Friday's close, the biggest discount since September last year, indicating healthier near-term supplies.
This compares to premiums of $12 a week ago and $161 in late May, when buyers were worried about potential shortages. CTA (Commodity Trade Advisor) funds, often driven by computer algorithms, were selling zinc on Monday morning, Al Munro at broker Marex Spectron said in a note. LME zinc lost 0.3% to finish at $2,417 a tonne. Global primary aluminium output fell to 5.246 million tonnes in June from a revised 5.406 million tonnes in May, data showed.
"Putting this month's reading to one side, there are now clear signs that global aluminium output will recover in the second half of 2019 as output in China catches up with the rest of the world," Kieran Clancy at Capital Economics said in a note. Benchmark LME copper fell 0.8% to end at $6,017.50 a tonne, aluminium shed 1.7% to $1,816, lead dropped 2.1% to $2,009 and tin, untraded in official rings, was bid up 0.3% at $17,850.

Copyright Reuters, 2019

Comments

Comments are closed.