Nickel Prices Rise 0.9% While Hedging Faces Shareholder Pushback

While hedging may offer an option to metal buying organizations (pun intended) it may become elusive to mining firms such as Norilsk Nickel, “In April, a company source said that Norilsk might launch a hedging programme after it signed a deal with Sherbank that included possible “metal price insurance”.

According to the article however, Norilsk’s head of corporate finance said, “Norilsk Nickel is not considering the possibility of

hedging prices for its metals now.” The hesitation to hedge comes from shareholder backlash in that many investors actually seek commodity exposure.

On Monday, June 10, the day’s biggest mover was the spot price of nickel, which saw a 0.9 percent increase on the LME to $15,045 per metric ton. The cash price of primary Indian nickel rose 0.5 percent. At $15,105, the 3-month price of nickel finished the market day on the LME up 0.4 percent per metric ton.

Chinese stainless steel prices closed flat for the day. The price of Chinese ferro-chrome saw essentially no change for the fifth day in a row. The price of Chinese ferro-moly maintains its flat trend.

The price of Chinese 316 stainless coil remained essentially flat. The price of Chinese 304 stainless coil held steady as well. The price of Chinese 316 stainless steel scrap was unchanged. For the fifth day in a row, the price of Chinese 304 stainless steel scrap remained essentially flat. The price of Chinese primary nickel saw little movement on Monday.

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