Nickel prices drop on higher inventories

Most base metals prices were up Thursday, but nickel saw declines on more gains in inventories.

Nickel prices were down by $50 to $17,150 per tonne in London Thursday as inventories were up to 53,796 tonnes, the most in over nine years.

The metal also declined on a prediction from Norilsk Nickel (RTS: GMKN; MICEX: GMCK), the world’s largest nickel producer, that production will top demand for nickel through 2012.

December copper added 3 cents to $3.13 per pound in New York while three-month copper added $25 to $6,930 per tonne in London on a weaker dollar, while aluminium added $6 to $2,509 per tonne, zinc was $10 higher to $1,800 per tonne, lead gained $20 to $2,015 per tonne and tin traded around $300 higher to $17,600 per tonne.

On the other hand, precious metals declined, with gold lower on hopes that a bailout plan for the US financial sector will be passed and will benefit financial markets.

December gold was down $13 to $882 per troy ounce while December silver fell 17 cents to $13.28 per troy ounce and January platinum dropped $39.80 to $1,191.20 per troy ounce.