Our Stainless MMI took another dip in April, amid a broad sell-off in industrial metals. In addition, at the beginning of May, the Philippine parliament rejected Regina Lopez’s bid to be appointedas environmental minister. In a matter of weeks, nickel’s story has shifted from a clear supply shortfall to a rather complex narrative, ruining nickel bulls’ party.
Nickel prices on the LME fell by 5% in the next two days after the news. We pointed out in March that a rejection would be bearish for nickel prices. Regina Lopez had previously ordered the closure or suspension of 22 of 41 operating mines in February in addition to canceling several contracts for mines that were under development.