Rising steel prices in China helped to boost steelmaking ingredients zinc and nickel on Tuesday despite a stronger dollar making metals more expensive for buyers with other currencies, Reuters reported. China is the world’s biggest steel producer and a seasonal recovery in construction activity has driven prices higher, with steel product rebar up 15% since late March. “The stainless cycle is looking a little bit better,” said BMO Capital Markets analyst Colin Hamilton. “I can see them (nickel and zinc) being supported.” Benchmark nickel on the London Metal Exchange was up 0.6% at $14,870 a ton, taking gains since the start of May to almost 10%. Nickel on the Shanghai Futures Exchange hit three-year highs. LME zinc was up 1.1% at $3,084.50 a ton. The metal has fallen 14% from a 10-1/2 year high in February but was threatening to break above its downtrend line on Tuesday, which could trigger technical buying. On-warrant zinc inventories available to the market in LME-registered warehouses fell 9.2% to 195,325 tons, suggesting a tighter market and supporting prices.
