Nickel hit hard by china slowdown

Metals , Nickel , Stainless Steel Jul 10, 2013 No Comments

NickelNickel prices fell to a four-year low, in the latest fallout from slowing economic growth in China, the metal’s biggest user. Nickel prices are bearing the brunt of a steep decline in metals markets this year.

Nickel futures fell as low as $13,205 a metric ton Tuesday on the London Metal Exchange, its lowest price since May 2009, and ended the day down 0.8%, at $13,325. Prices have dropped 22% since the start of the year.

China’s growing pains have translated into less demand for nickel, which is mixed with iron ore to give stainless steel its rustproof property in everything from table forks to kitchen sinks to skyscrapers.

The slowdown in China‘s manufacturing has caused global supplies to build. Stockpiles of nickel held in warehouses certified by the LME, as of Tuesday, are up 37% since the start of the year and are near their highest level in history

Also weighing on prices is an increase in nickel output. Production from mines is set to outstrip global demand for the second year in a row, according to the International Nickel Study Group.

via Slowdown in China Dents Nickel – Wall Street Journal

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

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