Nickel price extends gains as metals traders await China’s return

The metal used in stainless steel and batteries rose as much as 1.3% on the London Metal Exchange, building on last week’s 5.9% rally as China’s stimulus program jolted investors who’ve been bearish on nickel’s prospects.

Nickel extended gains as supply cuts came into focus, while other metals held steady ahead of the reopening of Chinese markets after a weeklong holiday.

The metal used in stainless steel and batteries rose as much as 1.3% on the London Metal Exchange, building on last week’s 5.9% rally as China’s stimulus program jolted investors who’ve been bearish on nickel’s prospects.

Beijing unleashed a raft of support measures — including interest-rate cuts and targeted support for the property sector — late last month, driving sharp gains in global metals prices. Chinese industry delegates to LME Week said they believed the policy package represented a significant shift by authorities to place more emphasis on reviving economic growth.

A temporary disruption at Vale SA’s Onca Puma operation in Brazil also heightened investors’ focus on supply dynamics after a slew of heavy cutbacks at global mining operations this year. Japanese trading firm Sumitomo Corp. said last week it was assessing operations at its Ambatovy nickel mine in Madagascar after a slurry pipeline was damaged.

The broader metals markets were quiet ahead of Tuesday’s resumption of trading in Chinese markets and a scheduled press briefing that will include five senior officials from the National Development and Reform Commission. There are expectations the agency may outline further plans for public spending.

Nickel prices were 0.3% higher at $18,050 a ton on the London Metal Exchange at 4:16 p.m. local time. Aluminum was flat and copper drifted lower.