The global nickel market is moving from surplus to deficit, Switzerland-based commodities giant Glencore said at its 2014 Investor Day in London.
Director of Glencore’s nickel commodity department, Kenny Ives, said the market was set to move from an 80,000 mt surplus in 2014 to a balanced market in 2015, with emerging deficits thereafter.
“Assuming the Indonesian ban on ore exports is sustained, market deficits will emerge,” Ives said in a presentation.
He put annual demand growth at around 4.5% between 2014 and 2019 with global annual production growth at around 1% over the same period.
The price of Chinese 304 stainless steel scrap rose 2.1% on Wednesday, December 10, making it the day’s biggest mover. After three days of flat prices, it closed at CNY 9,850 ($1,592) per metric ton. On the tail of a three-day flat streak, the price of Chinese 316 stainless steel scrap rose by 0.8%, settling at CNY 13,350 ($2,158) per metric ton. After dropping for two days, the price of Chinese primary nickel flattened at CNY 115,800 ($18,716). The price of Chinese 304 stainless coil held steady at CNY 18,400 ($2,974) per metric ton. For the fifth day in a row, the price of Chinese 316 stainless coil remained essentially flat at CNY 23,700 ($3,831) per metric ton.
At CNY 10,950 ($1,770) per metric ton, the price of Chinese ferro-chrome was essentially unchanged. The price of Chinese ferro-moly held steady at CNY 90,000 ($14,546) per metric ton.
On the LME, the 3-month price of nickel declined 2.1% to $16,325 per metric ton. On the LME, the nickel spot price fell 1.8% to $16,250 per metric ton. The Indian nickel cash price saw a 0.5% decline to INR 1,032 ($16.68) per kilogram.