http://www.hoovers.com/freeuk/news/detail.xhtml?ArticleID=20080103375.8_328200587d005ec4
LME nickel soared some 7% to a 5-week high of $29,125 a metric ton, while LME
zinc hit a one-month high of $2,575/ton, up nearly 5% on the day. Other metals
were similarly buoyant, with LME copper closing out the day up 3.2%, aluminum
up 2.7% and tin and lead up 2%.
The start of the new year has brought a fresh wave of investment into the
commodities sector, traders said, followed by those trading on the momentum.
Also, portfolio and index rebalancing has played a part. Rebalancing of indexes
such as the Dow Jones AIG Commodity Index, which occurs on the 5th-10th
business day of January, are largely expected to favor nickel, zinc and
aluminum, the under performers of 2008 and also some of the best performers in
trade Thursday.
"(It's) all related to (commodity index) re-weightings,"said a London-based
trader. "There is a significant amount of nickel to be bought and it is all
basis the LME closing price," he said.
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