Vale has confirmed that it is indeed in talks with Glencore Xstrata “over potential cooperation between the mining groups’ nickel operations in Canada’s Sudbury basin, in an effort to cut costs as prices languish,” reports Reuters.
“Vale said on Thursday it was not planning ‘a corporate joint venture’ in Sudbury, but was looking at other options to join forces in mining, milling and smelting to save cash.”
“Nickel prices have fallen by around a fifth since January and are languishing around four-year lows, weighed down by oversupply.”
“‘We are looking at the synergies now and plan to start negotiating next year,’ Vale’s chief executive Murilo Ferreira told analysts in a quarterly earnings call, adding an eventual deal would not involve a full merger.”
On Thursday, November 7, the cash price of primary Indian nickel fell by 0.6 percent, making it the day’s biggest mover. On the LME, the nickel 3-month price declined 0.1 percent to $14,355 per metric ton. On the LME, the spot price of nickel fell 0.1 percent to $14,285 per metric ton.
Chinese stainless steel prices closed flat for the day. For the fifth consecutive day, the price of Chinese ferro-chrome held flat. The price of Chinese ferro-moly held steady.
The price of Chinese 316 stainless coil continues to hover for the fifth day in a row. The price of Chinese 304 stainless coil saw essentially no change for the fifth day in a row. For the fifth day in a row, the price of Chinese 316 stainless steel scrap remained essentially flat, as did the price of Chinese 304 stainless steel scrap. After dropping for two days, the price of Chinese primary nickel flattened.