Nickel Keeps Rising, But A Supply Shortage Is Nowhere in Sight

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While nickel just keeps on rising on the LME, the predicted supply shortage of the alloying metal in stainless steel is not happening.

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LME nickel warehouse stocks have reached multi-year highs of 314,400 tonnes, despite a forecast of a full year of supply shortage going into next year. LME nickel inventories grew seven percent just in June, breaking past the 300,000 tonnes mark for the first time in history.

Just last week, the World Bureau of Metal Statistics (WBMS) said that nickel was the only metal in the base metals complex to record a surplus for January to May, with production exceeding demand by 41,600 tons, continuing its trend from 2013, where the total surplus was 201,000 tons. A monthly report by AME Group research showed that all time high nickel inventory levels contradicts the notion of a tight nickel market.

LME nickel warehouse stocks have reached multi-year highs of 314,400 tonnes, despite a forecast of a full year of supply shortage going into next year. LME nickel inventories grew seven percent just in June, breaking past the 300,000 tonnes mark for the first time in history.

Just last week, the World Bureau of Metal Statistics (WBMS) said that nickel was the only metal in the base metals complex to record a surplus for January to May, with production exceeding demand by 41,600 tonnes, continuing its trend from 2013, where the total surplus was 201,000 tonnes. – See more at: http://www.fastmarkets.com/nickel-news/nickel-focus-where-is-tightening-supply-79259#sthash.OELqO0kx.dpufLME nickel warehouse stocks have reached multi-year highs of 314,400 tonnes, despite a forecast of a full year of supply shortage going into next year. LME nickel inventories grew seven percent just in June, breaking past the 300,000 tonnes mark for the first time in history.

Just last week, the World Bureau of Metal Statistics (WBMS) said that nickel was the only metal in the base metals complex to record a surplus for January to May, with production exceeding demand by 41,600 tonnes, continuing its trend from 2013, where the total surplus was 201,000 tonnes. – See more at: http://www.fastmarkets.com/nickel-news/nickel-focus-where-is-tightening-supply-79259#sthash.OELqO0kx.dpuf

On Thursday, July 31, the day’s biggest mover was the Indian nickel cash price, which saw a 2.7 percent increase to INR 1,160 ($19.22) per kilogram. This increase comes after the price fell for the two previous days. Following a 1.1 percent rise on Thursday, the 3-month price of nickel closed on the LME at $18,800 per metric ton. After falling for two days, the spot price of nickel rose 0.8 percent on the LME to $18,675 per metric ton.

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Chinese stainless steel prices were flat for the day. The price of Chinese ferro-chrome held steady at CNY 8,300 ($1,345) per metric ton. For the fifth day in a row, the price of Chinese ferro-moly remained essentially flat at CNY 145,000 ($23,495) per metric ton.

The Allegheny Ludlum 316 stainless surcharge held steady around $1.28 per pound. The price of Chinese 316 stainless coil saw essentially no change for the fifth day in a row, remaining around CNY 26,000 ($4,213) per metric ton. The price of Chinese 304 stainless coil remained essentially flat at CNY 16,400 ($2,657) per metric ton. The price of Chinese 316 stainless steel scrap saw little movement at CNY 16,100 ($2,609) per metric ton. The price of Chinese 304 stainless steel scrap remained essentially flat at CNY 16,400 ($2,657) per metric ton.

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