The WSJ reports,"base metals rose Friday on the London Metal Exchange, supported by a softer U.S. dollar and optimism about economic stability in top consumer China, but nickel prices continued to lag.
LME 3-month copper was up 0.7% from Thursday's settlement price, trading at $6,774 a metric ton. Aluminum rose 0.3% to $1,893.75 a ton, while nickel traded flat on the day at $18,550 a ton.
Nickel prices have corrected lower in the second half of this week, with losses triggered by an influx of the metal onto LME stocks.
"Following the increase in the nickel price up to mid-May, which we believe was exaggerated, we see further downside potential for it in the short term," said analysts at Commerzbank in a note. "Though the price should find support in the medium to long term from the export ban in Indonesia."
The ongoing clamp-down on ore exports in the top global producer of the metal has choked exports to top metals consumer China, supporting prices.
Other metals rose as investors continued to digest upbeat comments from senior authorities in China -- which accounts for 40% of the global demand for flagship LME metal copper. The government asserted that it would not accept economic growth of below 7.5%.
FastMarkets head of research Will Adams said in a note to clients he expected profit taking to cap advanced before long.
"But while the dollar is on a back footing further gains may well be seen [and] we also feel that the recent weakness in tin and nickel will attract bargain hunting," he added. A softer greenback currency helps to up the appeal of the buck-denominated base metals to buyers holding other currencies.
Three-month zinc traded 0.9% higher on the day at $2,172 a ton, while lead climbed 0.7% to $2,144 a ton, and tin rose 0.2% to $22,650 a ton".
