Nickel led across-the-board gains in Shanghai metals futures on Friday on bets China’s Communist Party congress next week will result in stronger demand for imports.
The potential by China to accelerate or broaden moves to eliminate environmentally inefficient mines and metals plants to better meet international industrial standards following the meeting is seen as a potential boost for imports.
China, the most important trading partner of more than 130 countries, is the world’s biggest greenhouse gas emitter.
A weakened U.S. dollar and growing arbitrage opportunities, particularly in copper, were also fuelling gains, according to commodities traders, as premiums for copper held in China bonded zones have climbed by $9 this week to $74, the highest in more than two months. CU-BMPBW-SHMET
“Nickel once again led the sector higher, as an ongoing curb on Chinese output continues to support prices,” ANZ said in a note. “However demand also remains strong, particularly from the alloys industries.”
