Despite continued weakness in nickel futures, many are predicting a deficit and higher prices in 2015. Glencore got on the bandwagon this week with its deficit prediction.
Vale also began considering the option of spinning off its nickel and copper unit this week.
The week’s biggest mover on the weekly Stainless MMI® was the 3-month price of nickel, which saw a 4.4% decline on the LME to $15,500 per metric ton. This week marked the third in a row of declining prices for the metal. At $15,500 per metric ton, the nickel spot price finished the week down 4.0% on the LME. The Indian nickel cash price dropped 3.1% this week, closing out the third consecutive week of falling prices at INR 998.00 ($15.84) per kilogram.
Chinese stainless steel prices were mixed for the week. Chinese ferro-chrome prices held steady from the previous week at CNY 10,950 ($1,762) per metric ton. At CNY 90,000 ($14,485) per metric ton, the week finished with no movement for Chinese ferro-moly.
The price of Chinese primary nickel saw a 4.1% drop-off this week to CNY 109,600 ($17,639) per metric ton. The past week saw Chinese 304 stainless coil close at CNY 17,750 ($2,857) per metric ton after a 3.5% decline. Closing at CNY 9,850 ($1,585) per metric ton, Chinese 304 stainless steel scrap remained unchanged for the week. Chinese 316 stainless steel scrap remained essentially flat from the previous week at CNY 13,350 ($2,149) per metric ton. At CNY 23,700 ($3,814) per metric ton, the price of Chinese 316 stainless coil did not change since the previous week.
Following a steady week, prices for Korean 304 stainless coil closed flat at KRW 4.2 million ($3,881) per metric ton. Korean 430 stainless steel coil traded sideways last week, hovering around KRW 2.6 million ($2,376) per metric ton. At $0.72 per pound, the Allegheny Ludlum 304 stainless surcharge remained essentially flat. Following a steady week, prices for the Allegheny Ludlum 316 stainless surcharge closed flat at $0.97 per pound.
The Stainless MMI® collects and weights 14 global stainless steel and raw material price points to provide a unique view into stainless steel price trends. For more information on the Stainless MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.