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Nickel Prices Under Pressure From Vanishing Deficits

Metal News - Published on Mon, 17 Jun 2019

Image Source: Reuters
Reuters reported that rapidly rising nickel supplies and slowing demand from stainless steel mills are weighing on prices of the metal, which are likely to come under further pressure this year as deficits disappear. Reasons behind weaker demand from the stainless sector, which accounts for 70% of global nickel consumption estimated at 2.4 million tonnes this year, include overstocking of stainless steel by producers earlier in 2019.

Also a major influence is the trade dispute between the United States and China, the world’s two largest economies, and its potential to disrupt growth and demand.

Benchmark nickel on the London Metal Exchange, at USD 11,800 a tonne, has fallen 25% over the last 12 months.

Wood Mackenzie analyst Mr Andrew Mitchell said that “The market will pretty much be balanced this year - there’s no massive deficit to assist prices and the trade war is hanging over the market. We’re looking for an average at about USD 12,300 this year.”

Mr Mitchell said that “Stainless demand is not particularly strong. China has imposed anti-dumping duties on stainless steel imports and Indonesian producers are looking for other markets.”

Source :

Posted By : Ratan Singh on Mon, 17 Jun 2019
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