London nickel recovers after hitting month low on record stocks
Published on Thu, 21 May 2015 59 times viewed
Reuters reported that nickel recovered to end slightly firmer after falling to its lowest in nearly a month as London Metal Exchange stocks hit another record and demand from China's stainless steel sector remained lacklustre. LME warehouse stocks of the metal jumped to a record 446,640 tonnes, reflecting sluggish global demand while supply has proved resilient to a ban on nickel ore exports from Indonesia, formerly the world's top exporter.
Mr Vivienne Lloyd metals analyst of Macquarie said that "We need to see nickel ore prices ticking up in China, that's what traders and funds are looking for. You are beginning to see nickel pig iron production coming down and a stabilisation in ore prices, if not a lift, but we need stronger signals that raw material constraints have arrived."
Three month nickel on the LME ended up 0.2% at USD 13,110 per tonne, having earlier hit its lowest since April 24 at USD 12,785. The metal slid 4.8% on Tuesday, its steepest fall since September.
Commerzbank said that the primary use for nickel is in the manufacture of stainless steel. speculators had likely withdrawn further from nickel, hurting prices. According to the LME's statistics, they slashed their net long positions by 40% last week.
Falls in nickel were limited, however, by Tuesday's industry data showing the global nickel surplus fell to 100 tonnes in March from a revised 18,700 tonnes last month. LME zinc ended down 1.26% at USD 2,200 a tonne, having earlier hit its lowest in nearly a month at USD 2,193, weighed down by LME data showing a 36,375 tonne inflow of zinc stocks into warehouses.
Source : Reuters