Mirabela Nickel Missed Interest Payment on Debt; Nickel Prices See Gains

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Mirabela Nickel Ltd. said it missed an interest payment due on its debt, saying it “will only cause a default should it continue for 30 days,” reports Bloomberg.

“The company didn’t make a payment of interest on Oct. 15 relating to the about $395 million of 8.75 percent unsecured notes maturing in 2018, Perth-based Mirabela Nickel said today in a statement.”

“Mirabela Nickel, halted from trading in Sydney on Oct. 7, has seen its market value plunge to A$14 million ($13.5 million), from A$421 million at the start of the year. The company had its credit rating lowered to Caa3, from Caa1, by Moody’s Investors Service Inc. this month, and cut to CCC+, from B-, by Standard & Poor’s.”

The cash price of primary Indian nickel saw the biggest increase at 1.9 percent for Monday, October 21. On the LME, the nickel spot price gained 1.5 percent to finish at $14,165 per metric ton. At $14,210, the nickel 3-month price finished the market day on the LME up 1.3 percent per metric ton.

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Chinese stainless steel prices were mixed for the day. The price of Chinese ferro-chrome was unchanged. The price of Chinese ferro-moly saw essentially no change for the fifth day in a row.

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The price of Chinese primary nickel improved by 1.0 percent. The price of Chinese 316 stainless coil remained essentially flat. The price of Chinese 304 stainless coil continues to hover for the fifth day in a row. For the fifth consecutive day, the price of Chinese 316 stainless steel scrap held flat. The price of Chinese 304 stainless steel scrap saw little movement.