Shanghai nickel jumps 17%, gains by daily limit on supply worries

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SINGAPORE — Shanghai nickel prices climbed 17% on Thursday, gaining by their daily limit, while London aluminum rose for a second session as disruptions from the Russia-Ukraine conflict and higher energy costs triggered concerns over global supply.

The most-active nickel contract on the Shanghai Futures Exchange rose 17%, rising by its daily limit to 233,710 yuan ($36,666.14) per tonne.

Three-month aluminum London Metal Exchange (LME) added 0.2% to $3,659.50 a tonne and Shanghai aluminum gained 1.1% at 23,245 yuan a tonne.

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“Russia’s threat to accept on roubles for natural gas raised concerns that metals may also be caught up on this edict,” ANZ said in a note.

“The London Metal Exchange is also said to be discussing whether it should still accept Russian metal in its warehouses and be delivered against contracts.”

ROUBLE PAYMENT: Prices of metals extended gains after Russia said it would seek payment in roubles for gas sales from “unfriendly” countries, sending European gas prices soaring and fueling worries about more smelter closures.

VOLATILE NICKEL: The world’s top nickel trading venue endured a record price surge on March 8, a six-day trading suspension, and then a restart hit by technical glitches after it launched price limits for the first time.

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COPPER: Zambia’s Mopani Copper Mines reported on Wednesday a second fatal accident in three days at the mine. Activity at the operation has been disrupted as a result.

ALUMINIUM PRODUCTION: Germany-based TRIMET will over coming weeks cut aluminum production at its Essen facility by 50% because of higher energy prices after Russia invaded Ukraine, the company said on Monday.

CRUDE OIL: Oil futures extended gains on Thursday, after sharply rising in the first portion of the week, as traders weighed additional supply disruptions following reports of storm damage at a major export terminal system on the Black Sea.

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PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminum

Most active ShFE aluminum

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

ARBS ($1 = 6.3740 yuan) (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips and Uttaresh.V)