Nickel prices reach a six-week high on Friday

Nickel prices reach a six-week high on Friday, and the market outlook is expected to widen the supply gap and rise in copper, which is expected to increase as the demand for growth in China.

August global nickel market supply gap widened to 6,700 tons, Brazil's Vale third quarter nickel production fell down 4.3%.

Colin Hamilton, head of commodity research at BMO Capital Markets, said supply shortages are expected to boost nickel prices rather than production costs.

Fears of slowing growth in China are helping to raise copper prices. Investors think that the market for China's central bank governor on Thursday about the response to the asset bubble warning is overstated.

Hamilton said: "China's industrial performance is generally very good."

China's industrial production in September rose 6.6%, more than expected, from January to September fixed asset investment expand to 7.5%, less than expected.

1016 GMT, LME three-month nickel rose 3.2% to USD 12,110 per tonne. Nickel has risen about 4% this week and is expected to reach the fourth consecutive weekly increase.

Three-month copper rose 1.1 percent to USD 7,040 per tonne, rising for the first time since September 2014 to $ 7,000 per tonne.

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