Nickel Closes Up as BHP Billiton Mine Strike Begins

By Ese Erheriene

LONDON--Nickel futures closed up on the London Metal Exchange, as a strike at a BHP Billiton (BBL) mine got underway.

The LME's three-month nickel contract was up 1.5% at $12,590.00 a metric ton at the PM kerb close.

A strike at BHP Billiton's Cerro Matoso mine in Colombia began Tuesday at 3pm local time, following a break-down in negotiations. However, the metal--used predominantly in the production of stainless steel--hit a fresh six-year low earlier in the session at $12,205.00 a ton. Oversupply concerns continue to weigh on the metal.

Elsewhere, the picture was less rosy for copper futures, which closed down 0.8% at $5,945.00 a ton on the LME.

"Subdued global demand growth and supply surpluses are expected this year and next, with a weaker Chinese economy and struggling economic growth in Europe and Japan," said Sucden Financial

The expected range for the metal for the second quarter of this year is between $5,900-$6,450.

Among the other base metals, aluminum closed up 1.3% at $1,788.00 a ton, zinc closed 0.6% lower at $2,194.00 a ton, lead ended the session 0.6% lower at $1,979.00 a ton and tin closed up 1.0% at $16,275.00 a ton.

Write to Ese Erheriene at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires