Nickel joins the rally in base metals

MUMBAI: Nickel, the laggard in last one month���s base metal rally, seems to have joined the lead of copper and lead with a gain of 17% in last ten days.

LME prices, currently trading at $11,800 per tonne, are up 25$ from their early April lows. Domestic prices, as reflected by June futures on MCX (Multi Commodity Excahnge), stand at Rs 590 per kg, up 6% from Friday���s close of Rs 557.

Analysts, however, attribute this gain to a breakout of a range in the international prices since mid-February, with the rally in its counterparts like copper lending support. ���Nickel has managed to pace up with the rally in metals like copper while a breach of $10,800 turned out to be a trigger for the rise,��� said Navven Mathur, research analyst, Anand Rathi Commodities.

While all base metals, including copper and lead, have experienced a significant rebound from mid-February, it is interesting to note that nearly 90% of the total gain in nickel prices since then has taken place in the month of April.

According to Praveen Singh, the stock levels in LME are very high for the price rally to gain a fundamental support. ���It will be difficult for international prices to move past a strong resistance range of $12,100-12, 500,��� he added.

Currently Nickel LME inventory stand at 105,264 tonnes, down 2% from a 13-and-half year high of 107,682 tonnes on April 2.