MARKET TALK: LME Nickel, Aluminum Rally Looks Sustainable

With aluminum and nickel back above pivotal levels, above $2,700/ton and $32,200/ton respectively, the recent rally looks more sustainable, says William Adams at BaseMetals. Although the higher prices may attract some lingering commodity-index fund rebalancing, which will create more price volatility, Wednesday's moves were a vote of confidence, says Adams. Aluminum trades at $2,700/ton, down roughly 0.3% from Tuesday, while nickel trades at $33,800/ton, up roughly 4% from Wednesday.