Neil Richardson, COO of VMS Ventures (TSXV:VMS) and North American Nickel (TSXV:NAN), a Canada-based mineral exploration and development company, recently spoke to the supply/demand fundamentals of the nickel market.
“Obviously, demand is a big concern. And you’re correct, although I didn’t see 90,000 [tons of surplus this year], I have 70,000 to 80,000, which is not that far off. So short term, there will be a very strong surplus of nickel in the market. A report put out by Wood Mackenzie that looks at nickel supply says that for 2013, 2014, 2015 and even 2016, we’re going to have a surplus in nickel supply, but after there should be a shortcoming in nickel supply,” he told Nickel Investing News in an interview.
Today’s Nickel and Stainless Steel Prices
The Indian nickel cash price saw a 1.4 percent increase on Tuesday, August 27, making it the biggest mover for the day.
The spot price of nickel flattened at $14,340 following two-days of declines on the LME. Following two days of downward movement, the nickel 3-month price held steady at $14,410 per metric ton on the LME. The price of Chinese primary nickel declined 0.1 percent.
Chinese stainless steel closed mixed yesterday. The price of Chinese ferro-chrome remained essentially flat. The price of Chinese ferro-moly saw little movement.
The prices of Chinese 304 and 316 stainless coil and scrap held steady.