Australian miner Sirius Resources NL is in late-stage negotiations with a trio of major nickel smelters to supply up to 26,000 tons of nickel concentrate annually, Reuters reported.
Sirius stock has risen more than sixfold in the two years since it discovered the high-purity Nova nickel deposit in west Australia, partly on expectations the concentrate would command a premium from smelting companies when output begins in late 2016.
Managing Director Mark Bennett said one of the companies involved in negotiations would probably take all the material, although he declined to name the firms involved.
However, he said that a steady supply of quality concentrate could help BHP Billiton attract more buying interest for the Nickel West division, which it is looking to sell.
The cash price of primary Indian nickel saw a 0.3 percent increase on Wednesday, July 16, reaching INR 1,169 ($19.43) per kilogram and making it the biggest mover for the day. After a 0.3 percent increase, the nickel spot price finished the day on the LME at $19,255 per metric ton. On the LME, the 3-month price of nickel rose 0.1 percent to $19,325 per metric ton.
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, remaining around CNY 8,300 ($1,337) per metric ton. The price of Chinese ferro-moly saw little movement at CNY 145,000 ($23,362) per metric ton.
For the fifth consecutive day, the Allegheny Ludlum 316 stainless surcharge held flat at $1.31 per pound. The price of Chinese 316 stainless coil remained essentially flat at CNY 26,000 ($4,189) per metric ton. The price of Chinese 304 stainless coil was unchanged at CNY 16,400 ($2,642) per metric ton. The price of Chinese 316 stainless steel scrap continues hovering around CNY 16,100 ($2,594) per metric ton for the fifth day in a row. For the fifth day in a row, the price of Chinese 304 stainless steel scrap remained essentially flat at CNY 16,400 ($2,642) per metric ton.