Nickel drops to 2-week Low on oversupply

Metals , Nickel , Stainless Steel Nov 07, 2013 No Comments

NickelNickel stockpiles tracked by the London Metal Exchange, which have surged 71 percent this year, reached an all-time high of 239,958 metric tons yesterday. This is a market in chronic oversupply resulting from systemic over-production.

Nickel dropped to a two-week low in London as record inventories are fueling concern that ample supplies will overwhelm demand for the metal, used to make stainless steel. Copper also slid.

Supply will exceed demand this year by 120,000 tons, up from a 92,000-ton surplus in 2012, according to Barclays Plc.

Nickel for delivery in three months declined 1.6 percent to settle at $14,110 a ton at 5:51 p.m. local time on the LME. Prices touched $14,059, the lowest since Oct. 18.

via Nickel Declines to Two-Week Low on Supply Outlook – Bloomberg

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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