If Mirabela Nickel defaults on a loan, they may be forced into administration.
“The Perth-based company revealed last week that one of its major customers planned to close its smelting facilities in November because of the adverse conditions, forcing it to terminate a sales agreement at the end of November,” reports The Australian. This cancelled contract created further strain on the companies cash flow.
Patersons Securities analyst Simon Tonkin “said the company was likely to head into administration if it defaulted on its loan because of the cancelled contract.”
The cash price of primary Indian nickel saw the biggest decline of the day, dropping 1.5 percent on Tuesday, October 1. After improving for two days, the 3-month price of nickel declined 0.3 percent on the LME to $13,930 per metric ton. The nickel spot price closed at $13,850 per metric ton. Following a couple days of improvement, the metal’s price weakened by 0.2 percent on the LME.
Chinese stainless steel prices were flat for the day. The price of Chinese ferro-chrome saw essentially no change for the fifth day in a row. For the fifth consecutive day, the price of Chinese ferro-moly held flat.
The price of Chinese 316 stainless coil remained essentially flat. The price of Chinese 304 stainless coil saw little movement. The price of Chinese 316 stainless steel scrap remained essentially flat. The price of Chinese 304 stainless steel scrap continues to hover for the fifth day in a row. The price of Chinese primary nickel held steady.