Shanghai Nickel Prices Surge on Supply Disruptions
Shanghai nickel prices jumped nearly 6% on Tuesday, reaching a three-month high as trading resumed following a week-long holiday. The most-traded November nickel contract on the Shanghai Futures Exchange (SHFE) rose 3.4% to 135,470 yuan ($19,304 per metric ton) after peaking at 138,800 yuan, the highest since July 9.
Meanwhile, three-month nickel on the London Metal Exchange (LME) fell by 1.2% to $17,830 per ton.
The price surge was driven by supply disruptions. Brazilian miner Vale temporarily halted operations at its Onca Puma nickel plant in Para state due to damage to an electricity transmission network caused by heavy winds. Additionally, Madagascar's Ambatovy nickel and cobalt mine shut down its ore pipeline due to damage, as reported by major shareholder Sumitomo Corp.
Other metals saw mixed movements. SHFE copper fell 0.3% to 78,540 yuan ($11,040), and LME copper dipped 0.1% to $9,918, as the market looked to China's National Development and Reform Commission for further economic cues. LME aluminium slipped 0.3% to $2,650 per ton, zinc lost 0.4% to $3,160.5, tin fell 0.8% to $33,650, and lead declined 0.5% to $2,138.5.
In contrast, SHFE aluminium gained 1.2% to 20,745 yuan ($2,955) per ton, zinc rose 2.4% to 25,675 yuan ($3,657), lead edged up 0.3% to 16,995 yuan ($2,421), and tin jumped 2% to 268,750 yuan ($38,291).
China recently introduced its most aggressive stimulus measures since the COVID-19 pandemic, aimed at spurring economic growth, which provided a general boost to the industrial metals market.
