METALS-Shanghai nickel hits 3-month high on potential sanctions on Russia

Credit: REUTERS/JUAN CARLOS ULATE

BEIJING, Feb 23 (Reuters) - Shanghai nickel extended its rally on Friday to hit a three-month high, buoyed by supply fears amid news of potential U.S. sanctions on Russian metals, while a weaker dollar also lent support to the market.

The most-traded March nickel contract on the Shanghai Futures Exchange SNIcv1 advanced 5.1% to 136,500 yuan ($18,973.35) per metric ton as of 0210 GMT, hitting the highest since Nov. 20.

Three-month nickel on the London Metal Exchange CMCU3 climbed 0.3% to $17,450 per ton, hovering around 14-week highs amid short-covering.

U.S. President Joe Biden said Washington plans to announce a major sanctions package against Moscow on Friday, triggering speculation over expansion of sanctions on Russian metals.

Russia is a major producer of refined nickel, palladium and aluminium.

Also helping metal prices was a weaker U.S. dollar =USD as it makes it cheaper to purchase the greenback-priced commodity.

The dollar index was little changed on Friday after sliding in previous sessions as investors waited on new data catalysts for clues on when the U.S. Federal Reserve is likely to begin cutting interest rates.

Elsewhere, LME aluminium CMAL3 climbed 0.6% to $2,210 per ton, copper CMUC3 was up 0.3% at $8,606, zinc CMZN3 rose 0.5% to $2,398, lead CMPB3 was unchanged at $2,087.50 and tin CMSN3 nudged 0.1% up to $26,200.

SHFE aluminium SAFcv1 added 0.3% to 18,865 yuan a ton, copper SCFcv1 was up 0.4% at 69,420 yuan, tin SSNcv1 dipped 0.5% to 216,200 yuan, zinc SZNcv1 gained 0.2% to 20,435 yuan, and lead SPBcv1 moved 0.1% higher to 15,885 yuan.

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($1 = 7.1943 Chinese yuan)

(Reporting by Siyi Liu and Andrew Hayley; Editing by Subhranshu Sahu)

((Siyi.Liu@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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