Contract tags up 50% for ’07 nickel delivery

Dec 14, 2006 | 01:39 PM | Meghann McDonell

Nickel contract prices for 2007 have shot up as the metal continues to trade at record prices on the London Metal Exchange.

"Contracts are being booked at rates about 50 percent higher than last year," one trader said. "With nickel prices being where they are, the cost of contracts is significantly more."

The alloying metal's backwardation also has lent support to the heightened booking rates, traders said.

Nickel climbed to an all-time high Thursday on the LME, with three-month metal ending the final kerb session at $34,725/$34,750 a tonne (bid/ask), up an average of $1,462.50 from the previous day's close at $33,250/$33,300 a tonne. The cash-to-three month backwardation stood at $800/$900 a tonne Thursday.....

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