Nickel Back Up on LME, Barron’s Recommends Investing in Norilsk

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Barron’s Demitra DeFotis recommends investing in Russian nickel giant, Norilsk Nickel Mining & Metallurgical. Norilsk also is the largest producer globally of palladium, whose prices are near multiyear-highs.

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Higher metals prices, the sale of underperforming assets in Australia, expansion projects, and lower-Russian export duties should boost cash flow and possibly enhance Norilsk’s already attractive 7% yield, DeFotis said.

The Indian nickel cash price closed as the biggest mover for Monday, June 2. Switching from a downward trend, the metal closed at INR 1,160 ($19.58) per kilogram following a 3.4 percent increase. Following a 3.0 percent rise yesterday, the spot price of nickel closed on the LME at $19,300 per metric ton. The nickel 3-month price is back up, rising by 2.4 percent on the LME on Monday to close at $19,275 per metric ton.

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Chinese stainless steel prices were flat for the day. The price of Chinese ferro-chrome was unchanged at CNY 8,300 ($1,328) per metric ton. The price of Chinese ferro-moly held steady at CNY 145,000 ($23,195) per metric ton.

The Allegheny Ludlum 316 stainless surcharge remained essentially flat at $1.29 per pound. For the fifth day in a row, the price of Chinese 316 stainless coil remained essentially flat at CNY 26,000 ($4,159) per metric ton. The price of Chinese 304 stainless coil continues hovering around CNY 16,400 ($2,623) per metric ton for the fifth day in a row. The price of Chinese 316 stainless steel scrap remained essentially flat at CNY 16,100 ($2,575) per metric ton. The price of Chinese 304 stainless steel scrap saw little movement at CNY 16,400 ($2,623) per metric ton.

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