March 15 (Bloomberg) -- Nickel rose to a record for a fourth consecutive day in London as stockpiles of the metal used in stainless steel plunged, increasing speculation that supply won't meet demand. Copper and aluminum also advanced.
Inventories monitored by the London Metal Exchange fell 5.8 percent to 3,594 tons, the exchange said in a daily report. That's less than two days of global consumption. Stockpiles have slumped 45 percent this year on surging Chinese demand for stainless steel.
``Supply has just not caught up with demand, particularly for stainless steel in Asia, and there is little prospect of that changing in the near future,' Kevin Norrish, an analyst with Barclays Capital in London, said today by phone.
Nickel for delivery in three months on the LME gained $1,300, or 2.9 percent, to $46,100 a metric ton as of 9:40 a.m. in London. That beat yesterday's record by $1,100.
The metal has jumped more than sixfold in the past five years as supply failed to keep up with demand. China last year overtook Japan as the world's largest producer of stainless steel. China's stainless steel production soared 68 percent last year, the Xinhua News Agency reported last month.
Copper gained $180, or 3 percent, to $6,410 a ton after stockpiles fell for fifth consecutive day. LME-monitored inventories dropped 0.8 percent to 196,125 tons, the lowest since Jan. 23.
Aluminum rose $35 to $2,750 a ton, lead gained $45 or $1,920, zinc advanced $85 to $3,305 and tin jumped $225 to $13,725.
To contact the reporter on this story: Brett Foley in London at bfoley8@bloomberg.net .
Last Updated: March 15, 2007 05:57 EDT
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