Eramet Chief Executive, Patrick Buffet, “has blamed oversupply in the world nickel market for steep losses at a subsidiary as China ramps up its own production, with little end in sight,” reports the AFP.
“Patrick Buffet said the global overcapacity was causing Societe Le Nickel (SLN), the group’s nickel subsidiary in New Caledonia, to rack up monthly losses of 2.5 billion French Pacific francs ($27 million).”
“‘The crisis in the nickel (market) is very, very intense and nobody expected it to reach such a level,’ Buffet told reporters in Noumea on Thursday after a board meeting of SLN, the largest private employer on New Caledonia’s main island of Grande Terre.”
On Thursday, November 21, the day’s biggest mover was the nickel 3-month price, which saw a 0.9 percent decline on the LME to $13,570 per metric ton. The nickel spot price weakened by 0.5 percent on the LME, settling at $13,505 per metric ton. The Indian nickel cash price saw a 0.4 percent decline to INR 868.50 ($13.84) per kilogram.
Chinese stainless steel prices closed flat for the day. The price of Chinese ferro-chrome saw little movement. For the fifth consecutive day, the price of Chinese ferro-moly held flat.
The price of Chinese 316 stainless coil saw little movement. For the fifth day in a row, the price of Chinese 304 stainless coil remained essentially flat. The price of Chinese 316 stainless steel scrap held steady. The price of Chinese 304 stainless steel scrap remained essentially flat. The price of Chinese primary nickel saw little movement on Thursday.