Nickel Falls as Surplus Persists for Fifth Month; Copper Slips

Nickel fell for the first time in three days after data showed global output beat demand for a fifth month.

The surplus narrowed to 3,000 metric tons in November from 13,000 tons the previous month, the International Nickel Study Group said in an e-mailed report Monday. HSBC Holdings Plc cut its price forecast for the metal by 11 percent, citing increasing ore supplies from the Philippines.

“The market may be disappointed that it is taking so long to shift from surplus to deficit,” Nic Brown, head of commodity research at Natixis in London, said by e-mail.

Nickel for delivery in three months fell 2.1 percent to settle at $14,475 a ton on the London Metal Exchange, after climbing 3.3 percent in the previous two sessions.

Jefferies Group LLC forecast in a Jan. 7 report a global nickel deficit of 40,000 tons in 2015, with the shortage widening to 88,000 tons next year.

Copper declined 0.8 percent to $5,672 a ton on the LME, after gaining as much as 1.1 percent earlier in the day. Stockpiles of the metal monitored by the bourse rose 5.1 percent, the most since March, to 210,600 tons, daily data show.

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