The nickel market has been “weighed down” as of late, according to a recent article in the FT:
“Stocks of nickel at LME-registered warehouses have soared to record highs amid a surge in production of so-called ‘nickel pig iron’ in China. Nickel inventories last week hit 200,000 tonnes for the first time on record, double the level of a year earlier.
‘Nickel is the metal that continues to see selling,’ said Walter de Wet, head of commodities research at Standard Bank. He pointed out that the number of nickel contracts on the LME had risen significantly in recent months, suggesting that investors had placed large bets on lower prices – or short positions – for the metal.”
The spot price of nickel saw the biggest decline of the day, dropping 1.4 percent on the LME to close at $13,635 per metric ton on Tuesday, July 30. On the LME, the 3-month price of nickel declined 1.3 percent to $13,715 per metric ton.
The cash price of primary Indian nickel fell 0.6 percent.
Chinese stainless steel prices were unmoving. Chinese ferro-chrome and ferro-moly remained essentially flat.
However, the price of Chinese primary nickel weakened by 0.6 percent.