Nickel and zinc struck major peaks this week on expectations of keen demand for both industrial metals, analysts said.

 

The pair were also catapulted higher as industry bigwigs descended on the British capital for London Metal Exchange (LME) Week, an annual sector event that finished on Friday.

"It is base metals primarily in the spotlight this week as the industry has gathered in London for LME Week," noted UniCredit analysts in a research note to clients.

"Generally, sentiment has been fairly upbeat, but nickel has stolen the show as much of the focus has been on the metal as a key component for electric-vehicle batteries.

"There are expectations for strong growth from this sector in the coming years and amid the hype, nickel has this week rallied to levels not seen since June 2015."

They added: "For now, nickel seems to be pulling some of the other base metals higher with it."

Nickel hammered a path on Wednesday to $13,030 per tonne -- the highest level since June 2015, before it encountered profit taking.

Zinc meanwhile touched its highest level in more than a decade on the same day, aided by tight global supplies.

The metal scooted all the way to $3,326 per tonne, attaining its best point since August 2007.

UniCredit analysts cautioned however that there was a "danger" that prices were running ahead of a pick-up in consumption for base metals.

source: AFP