Lead, nickel both reach new records as inventories decline

Metals prices were mostly higher on Tuesday, with nickel and lead both hitting new records despite the fact that nickel ended the session lower than Monday’s close.

Nickel was 1.8 percent lower on the day to $48,500 per tonne, but went above $50,000 per tonne earlier in the session as inventories in London Metal Exchange warehouses dropped 180 tonnes to only 3,006 tonnes during the day. Adding to concerns was the possibility of a strike at a Canadian mine.

Gainers included lead, which added 1.5 percent to close at $2,020 per tonne after going to a new record high of $2,040 earlier. Again, inventory declines were a key factor as LME inventories dropped by 950 tonnes. Supply disruptions at an Australian mine last week also helped drive prices higher.

Zinc added 3.3 percent to $3,550 per tonne after LME stockpiles dropped by 500 tonnes, while copper was 5 percent higher to $7,710 per tonne on record imports by China. First quarter copper imports by the Asian nation were up 58 percent from the first three months of last year.

In precious metals, gold added 1.2 percent to $678.50 per troy ounce after an announcement over the weekend from Iran that it is ready to undertake uranium enrichment on an industrial scale. Meanwhile, platinum gained 0.8 percent to $1,261 per troy ounce, while palladium was 1.3 percent higher to $357 per troy ounce.