Vale IPO Hinges on a 20% LME Price Increase for Nickel

by on

A possible public listing of a stake in the base metals unit of Brazil’s Vale SA hinges on a rally in nickel prices of around 20%, its chief financial officer said on Friday.

FREE Download: The Monthly MMI® Report – covering the Stainless/Nickel markets.

“We want to see nickel prices above $20,000 per ton in order to consider such an option, I would say well above,” Luciano Siani said in an interview with Reuters.

Earlier this week Vale, the world’s largest producer of iron ore, said it was considering an initial public offering of 30 to 40 percent of its base metals division, because the unit was undervalued by the market.

On Friday, December 5, the price of Chinese primary nickel experienced the biggest change, rising 3.1% to CNY 118,500 ($19,257) per metric ton. The price of Chinese 304 stainless steel scrap showed little movement last Friday at CNY 9,650 ($1,568) per metric ton. The price of Chinese 316 stainless steel scrap remained essentially flat at CNY 13,250 ($2,153) per metric ton. The price of Chinese 304 stainless coil steadied at CNY 18,400 ($2,990) per metric ton following two-days of increases. Chinese 316 stainless coil held its value last Friday at CNY 23,700 ($3,851) per metric ton.

The price of Chinese ferro-chrome remained steady at CNY 11,050 ($1,796) per metric ton. Chinese ferro-moly stayed flat at around CNY 90,000 ($14,626) per metric ton.

* Get the complete prices every day on the MetalMiner IndX℠

On the LME, the spot price of nickel inched up 2.8% to $16,775 per metric ton. At $16,840, the 3-month price of nickel finished the market day on the LME up 2.7% per metric ton. After a 1.1% increase, the Indian nickel cash price finished the day at INR 1,065 ($17.25) per kilogram.

{Comments Off on Vale IPO Hinges on a 20% LME Price Increase for Nickel Comments Off on Vale IPO Hinges on a 20% LME Price Increase for Nickel}