Metals @ midday

LONDON (Dow Jones)-- London Metal Exchange nickel soared Wednesday morning on critically low supplies and bullish technical support, with traders expecting further upside across many of the base metals in the near-term.
The base metals are well supported due to light follow-through buying from Tuesday and a lack of major selling overnight in Asia, said an LME trader.
"The fact that prices have not come off indicate that the market is steadier than previously thought," the trader said.
Three-month nickel traded at $37,400 a metric ton at 1100 GMT, up nearly 4% from Tuesday. Despite an increase in nickel stocks by 156 tons to 3,924 tons Wednesday, stocks remain at critically low levels, the trader noted.
A jump in canceled warrants to 54% from Tuesday's 15% leaves just 1,806 tons available to the market - less than half a day's global consumption.
The large hike in canceled warrants in Busan and Singapore is largely Russian material and reflects market difficulties in sourcing material, a broker said.
Earlier Wednesday, three-month tin prices hit a new record high of $12,800/ton as uncertainty over key producers Indonesia and Bolivia continues. At 1100 GMT, tin traded at $12,750/ton, up over 1% from Tuesday.
"The sky's the limit for tin prices, especially when the market's so thinly traded and vulnerable to the speculative funds," said a broker.
Indonesia recently shutdown its private mining and smelting operations on Bangka island, where the country's largest tin reserve is located. Earlier this week, PT Koba Tin declared force majeure to its tin customers on shipments and deliveries of the metal.
Meanwhile, Switzerland's Glencore International AG Tuesday demanded compensation from Bolivia's government for nationalizing a tin smelter as part of President Evo Morales declared ambition to win greater control of the country's mineral wealth and refineries.
Elsewhere on the LME, three-month aluminum traded at $2,839/ton at 1100 GMT, up 0.7% from Tuesday on technical buying as political uncertainty in Guinea continues.
Guinea is a leading producer of bauxite, which is an essential component used to produce aluminum.
Guinean President Lansana Conte has imposed martial law until Feb. 23 after days of deadly protests. The protests were triggered over the weekend following Conte's appointment of a close ally from his Cabinet as prime minister, a move the opposition said sidestepped a power-sharing agreement.
A jump in copper stocks by 1,650 tons to 214,900 tons Wednesday capped earlier gains in copper prices. Stocks have increased by roughly 11% from the start of the year. At 1100 GMT, three-month copper traded at $5,725/ton, down 0.4% from Tuesday.
At the same time, lead traded at $1,700/ton, up roughly 1.5% from Tuesday as lead stocks declined by 875 tons to 35,000 tons Wednesday. LME lead stocks have fallen roughly 18% since the start of the year.