Canadian miner Sherritt International reported a much wider-than-expected quarterly loss as nickel prices fell due to a supply glut and weak demand from China.
Nickel prices fell 15% in the fourth quarter, from the third, and are down nearly 30% since May. The company said a strong dollar also contributed to the fall in nickel prices. On an adjusted basis, Sherritt posted a net loss from continuing operations of 27 Canadian cents per share. Analysts had expected a loss of 19 Canadian cents per share, according to Thomson Reuters.
On Wednesday, February 11, the day’s biggest mover was the 3-month price of nickel, which saw a 1.5% decline on the LME to $14,915 per metric ton. The nickel spot price closed at $14,855 per metric ton. Following a couple days of improvement, prices fell by 1.3% on the LME. The Indian nickel cash price saw a 0.9% decline to INR 936.50 ($15.02) per kilogram.
Chinese stainless steel closed mixed yesterday. The price of Chinese ferro-chrome was unchanged at CNY 10,950 ($1,755) per metric ton. The price of Chinese ferro-moly remained essentially flat at CNY 82,000 ($13,145) per metric ton.
Following a quiet couple of days, the price of Chinese primary nickel fell 1.1% yesterday to CNY 107,800 ($17,280) per metric ton. The Allegheny Ludlum 316 stainless surcharge continues hovering around $0.94 per pound for the fifth day in a row. The price of Chinese 316 stainless coil saw little movement at CNY 23,700 ($3,799) per metric ton. For the fifth day in a row, the price of Chinese 304 stainless coil remained essentially flat at CNY 16,700 ($2,677) per metric ton. The price of Chinese 316 stainless steel scrap showed little movement yesterday at CNY 13,050 ($2,092) per metric ton.