Supply woes saw London Metal Exchange nickel prices soar to fresh highs Wednesday while copper was little-changed within its recent range as investors remained cautious ahead of the outcome of talks at Escondida copper mine, traders said.

LME nickel prices hit a record $29,200 a metric ton, up 6.3% or $1,750/ton on Tuesday's PM kerb price, with extreme supply tightness and talk of a large short position fueling the rally.

Prices closed at $29,000/ton at late kerb, up 5.6% from Tuesday's late kerb.

Firm fundamentals, including stronger-than-expected demand from stainless steel producers has kept nickel in favor with metal market players. Canceled warrants in LME warehouses rose again Wednesday to 77.7%, equivalent to an additional 1,200 tons of material.

Copper prices tracked within the $7,600-7,750/ton range established in the last three sessions, ending the late kerb up $40 at $7,690/ton. Copper trading remains timid, traders said, mainly because of uncertainty linked to the two-week dispute at Chile's Escondida copper mine.

Copper prices are still sensitive to any fresh news of talks, particularly given any resolution in the strike is likely to undercut prices, said Jim Steel, a metals analyst at HSBC.

A further drawdown in LME zinc stocks helped keep zinc prices in positive territory with strong intra-day gains of 2.5% seen. Prices closed up $83 on Tuesday's late kerb price at $3,395/ton.

Aluminium prices moved within a tight $40/oz range, closing just shy of the pivotal $2,500/ton level at kerb at $2,499/ton, unchanged from previous PM kerb.
Prices in dollar a metric ton

3 Months Metal Bid-Ask Change from Tuesday PM kerb
Copper 7690.00-7700.00 Up 40.00
Lead 1226.00-1227.00 Up 16.00
Zinc 3395.00-3400.00 Up 83.00
Aluminium 2499.00-2501.00 Unch
Nickel 29000.00-29100.00 Up 1,550.00
Tin 8455.00-8475.00 Up 30.00
Aluminium Alloy 2230.00-2240.00 Up 20.00
Aluminium Alloy-NASAAC 2230.00-2250.00 Up 20.00