“Nickel’s recent fall from grace has been as spectacular as its earlier rise,” Reuters’ Andy Home writes.
At the May peak of its rally the London Metal Exchange nickel price was up almost 50% on the start of the year at $21,625 per ton. At its nadir last week the price of the stainless steel alloying metal touched a low of $14,690 per ton.
The capitulation has reflected an almost complete unraveling of what Home calls this market’s “much-hyped bull narrative.”
The nickel spot price fell 1.8% on Friday, October 31 to $15,300 per metric ton on the LME, making it the day’s biggest mover. After improving for two days, the nickel 3-month price declined 1.4% on the LME to $15,390 per metric ton. The cash price of primary Indian nickel gained 0.6% to finish at INR 975.70 ($15.92) per kilogram.
Chinese stainless steel prices were flat for the day. For the fifth day in a row, the price of Chinese ferro-chrome remained essentially flat at CNY 8,300 ($1,351) per metric ton. The price of Chinese ferro-moly saw little movement at CNY 145,000 ($23,609) per metric ton.
The Allegheny Ludlum 316 stainless surcharge was unchanged at $1.06 per pound. The price of Chinese 316 stainless coil continues hovering around CNY 26,000 ($4,233) per metric ton for the fifth day in a row. The price of Chinese 304 stainless coil remained essentially flat at CNY 16,400 ($2,670) per metric ton. For the fifth consecutive day, the price of Chinese 316 stainless steel scrap held flat at CNY 16,100 ($2,621) per metric ton. The price of Chinese 304 stainless steel scrap held steady at CNY 16,400 ($2,670) per metric ton.