Oct 27 (Reuters) - Nickel prices fell on Friday, pressured by a surplus in the global market and on track for their biggest weekly decline in a month.
Three-month nickel on the London Metal Exchange declined 0.7% to $17,960 per metric ton by 0133 GMT, while the most-traded November nickel contract on the Shanghai Futures Exchange shed 1.7% to 145,130 yuan ($19,840.05) a ton.
LME nickel was also set for the worst weekly performance since the week ended Sept. 29, down 3.2%.
"We forecast a surplus in the global nickel market in 2023 of 307,000 tons, expanding from the surplus of 126,000 tons seen in 2022," said analysts at BMI in a note.
However, LME nickel prices could rally to around $20,000 a ton on stretched fund short positioning, supply risk in top producer Indonesia and potential further Chinese easing, Citi analysts said.
Other nonferrous metals also declined as a firmer dollar makes greenback-priced commodities more expensive in other currencies.
LME aluminium eased 0.2% to $2,193.50 a ton, zinc edged down 0.1% at $2,433.50, tin declined 1.2% to $24,495, copper dipped 0.1% to $7,981 and lead was unchanged at $2,094.
SHFE copper fell 0.3% to 66,420 yuan a ton, aluminium declined 1% to 18,805 yuan, zinc shed 1% to 20,905 yuan, lead decreased 0.1% to 16,195 yuan and tin lost 2% to 210,560 yuan.
"We expect some recovery to metal prices in 2024 as U.S. dollar strength subsides, especially in the second half of 2024, although this is likely to be largely limited by a slowdown in global consumption levels," BMI said.
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DATA/EVENTS (GMT)
1230 US Consumption, Adjusted MM Sept
1230 US Core PCE Price Index MM, YY Sept
1230 US PCE Price Index MM, YY Sept
1400 US U Mich Sentiment Final Oct
($1 = 7.3150 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Sohini Goswami)
