LME Nickel Tests 15 Day High

Nickel.........

The news of Federal Reserve continue to assist the economy by $ 85 billion bond buying programme coupled with China State Reserve Bureau purchases of Nickel has amplified buying interest. The material used for the preparation of austenitic steel grades moved to a 15 day high on London Metal Exchange. The benchmark three month prices were ruling at $ 15295 per tonne, up $ 15200 per tonne.
The Federal Reserve President Dennis Lockhart comments have come at a critical time for commodities. The prices were dull and lackluster up until yesterday but statements from Lockhart that US Federal bank was committed to economic stimulus programme and reduction was not justified at the moment brought cheers.
Furthermore, supports have emerged from China State Reserves Bureau decision to buy 60000 metric tonnes of Nickel from International markets in 2013. Although this is not a major quantity but the restart of such buying is a promising sign. Refined Nickel demand has often been challenged by a cheaper substitute Nickel Pig Iron.
MCX Nickel June contract was the only one in green on Wednesday. The prices were trading at Rs 866.5 per kg, up 0.36 percent. The metal tested a high of Rs 867 and a low of Rs 862.5 per kg.
Source by Commodity Insights