Nickel falls on global supply glut

Source: Dukascopy Bank SA
© Scanpix/Reuters
Industrial metals extended previous losses as euphoria over the US fiscal deal waned. Investors turned to safe-haven assets after the Fed hinted it may end its bond-buying program. Limiting the downswing, weak employment numbers in the US are likely to force the Fed to continue its stimulus measures.

Aluminum plunged amid heavy pressure from firm greenback and bloated stockpiles at the LME. LME stocks added 2,150 tonnes on Thursday to remain near a record high of 5.24 million tonnes.

Copper sagged 0.97%, tracking strength of the US Dollar and concerns over looming US dispute on the country's debt limit. Meanwhile, copper inventories at LME dropped by 500 tonnes on Thursday from an one-year high on Wednesday.

Nickel dropped, following a surplus on the physical markets. High LME stocks and uncertainty whether the Fed will continue its asset-buying program also weighed on the metal.

Zinc sank amid overall weakness of the commodity sector and oversupply on the physical markets. International Lead and Zinc Study Group reported the global zinc surplus attained 157,000 tonnes in the first ten months of 2012.


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