LME Nickel prices continue to fall
Tuesday, 6 July 2010
LME stocks continued to fall in May to mid-June, reaching 131,712t on 15 June, down 10 per cent from the start of May and 17 per cent down this year. But this trend may soon stop, as rising supply in H2 2010 coupled with the summer slowdown in real demand, as well as a potential pause in restocking all threaten to put the brakes on further outflows of nickel, reports Commodity Online.
Nickel prices suffered the worst six weeks to mid-June of all base metals. The three-month LME contract was ~$20,000/t on 15 June, down 22 per cent from the start of May. However prices are still up 9 per cent from the start of the year.
Supportive factors have been restocking and rising demand leading to falling exchange stocks and weaker than expected supply due to delays at Vale's new Goro project on New Caledonia and the ongoing strike at Vale's Sudbury operations in Canada. This has seen premiums in the US and Europe rise significantly.
Nickel prices suffered the worst six weeks to mid-June of all base metals. The three-month LME contract was ~$20,000/t on 15 June, down 22 per cent from the start of May. However prices are still up 9 per cent from the start of the year.
Supportive factors have been restocking and rising demand leading to falling exchange stocks and weaker than expected supply due to delays at Vale's new Goro project on New Caledonia and the ongoing strike at Vale's Sudbury operations in Canada. This has seen premiums in the US and Europe rise significantly.