Vale and Glencore have broken off talks over combining their nickel assets in Canada in a deal that could have produced over $1 billion in annual cost savings, sources close to the matter told Reuters.
The discussions over linking the two companies’ neighboring nickel mining and processing facilities in the Sudbury basin in southeast Canada broke down partly due to disagreement over how to share the costs and savings and to worries about government and labor union reaction to potential job cuts and shutdowns, the sources said.
At $18,810 per metric ton, the 3-month price of nickel moved up 1.3 percent on Tuesday, September 2, making it the day’s biggest mover on the LME. On the LME, the nickel spot price rose 1.1 percent to $18,655 per metric ton. Following a 0.3 percent rise yesterday, the Indian nickel cash price closed at INR 1,143 ($18.89) per kilogram.
Chinese stainless steel prices were flat for the day. The price of Chinese ferro-chrome was unchanged at CNY 8,300 ($1,351) per metric ton. The price of Chinese ferro-moly held steady at CNY 145,000 ($23,609) per metric ton.
The Allegheny Ludlum 316 stainless surcharge showed little movement on Tuesday, hovering around $1.26 per pound. For the fifth day in a row, the price of Chinese 316 stainless coil remained essentially flat at CNY 26,000 ($4,233) per metric ton. The price of Chinese 304 stainless coil was unchanged at CNY 16,400 ($2,670) per metric ton. The price of Chinese 316 stainless steel scrap held steady at CNY 16,100 ($2,621) per metric ton. The price of Chinese 304 stainless steel scrap saw essentially no change for the fifth day in a row, remaining around CNY 16,400 ($2,670) per metric ton.