Nickel Pares Gains; Metal on Stranded Ship Less Than Expected By...

Nickel Pares Gains; Metal on Stranded Ship Less Than Expected

By Chanyaporn Chanjaroen

Jan. 22 (Bloomberg) -- Nickel, the only gainer this year on the London Metal Exchange, pared an advance that sent prices to a record after owner of the metal on board a ship grounded off the southwest coast of England said the vessel carried less than 20 percent of the expected amount.

The MSC Napoli, which is being towed to Devon, England, carried 160 metric tons of nickel, Keith Dunleavy, managing director of London-based Stratton Metal Resources Ltd., said today in a phone interview. Stratton owns the metal on board. Reuters reported on Jan. 19 that the ship contained at least 1,000 tons.

``People were trying to boost prices,'' Dunleavy said today in a phone interview. Stratton learned the exact amount of the metal on board the container ship today, he said.

Nickel for delivery in three months gained $300, or 0.8 percent, to $36,500 a ton as of 12:46 p.m. in London. Earlier, the contract climbed to $37,300 a ton, beating Jan. 19's high by $1,000.

Nickel rose as much as 2.5 percent Jan. 19 on speculation 1,000 tons of metal wouldn't be saved, reducing supplies when inventories monitored by the LME are less than two days of global consumption.

Usage will beat production by 3,600 tons this year, following a deficit of 23,300 ton in 2006, Deutsch Bank AG said in a Jan. 12 report.

Among other LME-traded metals, copper dropped $75, or 1.3 percent, to $5,530 a ton, aluminum rose $5 to $2,722 and lead climbed $45 to $1,620. Zinc dropped $5 to $3,645.

To contact the reporters on this story: Chanyaporn Chanjaroen in London at [email protected] .

Last Updated: January 22, 2007 07:59 EST