BUT IM PUTTING MY MONEY ON THE MINERS TO KNOW THEIR BUSINESS.Testing old highs now. A LT pon around $14-15/lb would be very sweet for producers.
Metals - Nickel rises over 5 pct on supply fears, investor demand, weak dollar Mon, Mar 3 2008, 14:49 GMT http://www.afxnews.com
LONDON (Thomson Financial) - Nickel surged more than 5 pct to hit its highest price since mid-November last year on fears of lower supply and as fund money continued to favour the commodity complex.
Elsewhere, gold hit a record close to the much hyped 1,000 usd per ounce and oil prices were less than 1 pct lower than a record above 103 usd per barrel, which boosted sentiment.
A weak dollar, meanwhile, was helping all commodities priced in the greenback, as those trading in stronger currencies found such raw materials cheaper.
"The ongoing strike at BHP Billiton's Cerro Matosa nickel mining and smelting operation in Colombia continues to lend support," said MF Global analyst Edward Meir.
Colombia's nickel production has been paralysed by a strike by around 3,500 workers at Anglo-Australian miner BHP Billiton PLC's Cerro Matoso mine. Workers began striking last month to obtain a guarantee of work for subcontractors.
By 2.17 pm, three-month nickel on the LME was higher at 33,105 usd per tonne -- its highest price since November 2007, against 31,500 usd.
At the start of this year, many analysts predicted metals prices were set to decline as a US-led recession would batter demand. However, in recent weeks, investors have favoured commodities as a hedge against ailing equity markets. Meanwhile, on the fundamental side bad weather and strike action has reminded market participants that the threat to supply remains, and is likely to support the value of industrial metals.
"The funds will no doubt have more money to invest so there is likely to be more ongoing interest from this sector," said BaseMetals.Com analyst William Adams. "The bullishness in the metals in recent weeks and especially last week, suggests there is more room on the upside," he added.
Elsewhere, the copper price is well supported as the LME reported in a daily note that stocks across the globe fell 2,275 tonnes and now stand at 141,375 tonnes -- their lowest level since September last year.
Copper for three-month delivery was up at 8,545 usd per tonne against 8,440 usd at the close Friday. Copper has risen some 25 pct since the start of 2008.
Meanwhile, Xstrata, one of the world's largest mining companies, earlier said while the short-term outlook looks shaky for metals, commodity demand in the long term should underpin the market.
"While a slowdown in the United States now seems highly probable, with likely negative consequences for short-term growth in the OECD countries, I expect any impact on Chinese GDP growth and emerging market demand for commodities, including metals, to be muted," Xstrata chief executive Mick Davis said.
In other metals, aluminium for three-month delivery rose to 3,170 usd per tonne against 3,107 usd per tonne on Friday.
Tin rose to 18,900 usd against 18,850 usd Friday.
In other metals, lead for three-month delivery was up at 3,410 usd per tonne against 3,330 usd, while zinc was higher at 2,830 usd from 2,745 usd a tonne on Friday.
