Metals prices up on inventory, supply concerns

In the metal markets on Wednesday, nickel was again in focus as the cash price hit $35,000 per tonne and three-month prices were up 6.4 percent to $29,200 per tonne, a new record. While inventories in London Metal Exchange warehouses grew by 354 tonnes, the amount in storage but already marked for delivery rose to 77.7 percent of LME inventories. Global stockpiles have shrunk to less than one day’s consumption. In other base metals, copper was at $7,700 per tonne as the strike in Chile continued. Management is currently considering a proposal from the union that cuts its demand for a pay raise from 13 percent to 10 percent.

Precious metals prices were up, with gold adding 0.6 percent to $628.40 per troy ounce and silver jumping 2.5 percent to $12.31 per troy ounce. Platinum and palladium prices were also higher, to $1,228 per troy ounce and $333 per troy ounce respectively.