Nickel Leads Gains in Industrial Metals as Chinese Credit Surges

  • Zinc advances to one-week high as Citigroup remains positive
  • LME copper canceled warrants extend gains on Asian warehouses

Nickel led gains in industrial metals as a surge in new credit in China pointed to a stabilizing economy in the world’s biggest commodities buyer.

Aggregate financing of 1.72 trillion yuan ($255 billion) in China last month exceeded a median estimate of 1.39 trillion yuan in a Bloomberg survey. Metals also advanced as the dollar weakened, making materials priced in greenbacks cheaper for buyers using other currencies.

Nickel for delivery in three months gained 1.2 percent to settle at $10,410 a metric ton at 5.51 p.m. on the London Metal Exchange, the biggest advance among six main metals traded on the bourse. Copper and tin also rose while aluminum and lead declined.

The Chinese data signals a “stabilization,” David Wilson, an analyst at Citigroup Inc. in London, said by telephone.

Zinc jumped as much as 1.7 percent to a one-week high as Citigroup said it remains positive on the metal through year-end and beyond. Prices will average $2,600 in the final quarter of next year, compared with $2,285 now, the bank said in an e-mailed report.

U.S. Outlook

The dollar fell for a second day against a basket of 10 currencies, extending a retreat from a seven-month high, as a report showed September consumer prices excluding food and fuel costs rose less than estimated.

In other metals news:

  • Chinese data due Wednesday is likely to show the economy expanded 6.7 percent in the three months through September, the third straight quarter at that pace, according to a Bloomberg survey.
  • Copper canceled warrants, or orders to remove the metal from LME-tracked warehouses, gained for a seventh day as bookings in South Korea climbed to the highest on record
  • A gauge of 18 global base metal producers tracked by Bloomberg Intelligence climbed 2.4 percent, led by Teck Resources Ltd.
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