Copper, nickel at new highs

Copper, nickel at new highs

LONDON (AFP): Copper and nickel held center stage last week, rising to new highs on the London Metal Exchange (LME) on, respectively, continued stock downdraws and problems at Russian group Norilsk, which produces 15 percent of the world's nickel.

Dealers believe production has slumped by some 30 percent at Norilsk, which has been hit by two major power problems this month. They believe production will not now recover until spring.

Copper rose around US$90 during the week to $2,916 per ton -- a new high since September 1990, on continued downdraws in stocks and on firm demand.

Nickel rose almost $450 during the week to $8,185 per ton -- a high since February 1992 -- as the market was dominated by news of Russian nickel producer Norilsk, hit by two major power problems this month, traders said.