Historical Nickel Price Tumbling, Takes Monthly Stainless Index Down

The Stainless MMI® took a rather large blow in May, falling 6 points from 91 to 85, primarily on the back of falling nickel prices, falling 304 prices in China as well as 304 China scrap prices.

A nickel glut has forced down the price by nearly about 50 percent since 2011, according to a recent Reuters report.

via Historical Nickel Price Tumbling, Takes Monthly Stainless Index Down | MetalMiner

Nickel: World Surplus

The International Nickel Study Group predicts an increase in the supply of nickel next year leading to a surplus of 70,000 tonnes. Several projects are either already planned or going live shortly.

This is the case with Koniambo in New Caledonia which will start commercial production at the beginning of January,  or the refinery project between Taganito Mitsui & Co and Sumitomo Metal Mining in the Philippines, despite a Japanese nickel market with an excess of 15,000 tons over three quarters.

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Nickel Slump Seen Ending as China Faces Ore Import Curbs

Nickel fell 12 percent this year on prospects for the biggest surplus since 2009. Morgan Stanley now predicts the glut will peak in 2012 and Barclays says prices should rally toward the end of the year on strengthening demand from stainless-steel makers, the biggest consumers.

The rebound may not happen until then as China runs down record ore stockpiles accumulated in anticipation of the Indonesian ban.

After slumping more than any other industrial metal, analysts and traders say the worst may be over for nickel as restrictions on shipments from Indonesia, the biggest producer, diminish a worldwide glut.

via Nickel Slump Seen Ending as China Faces Ore Import Curbs – Bloomberg.

Copper Heads for Record Weekly Gain, Industrial Metals Jump on Europe Pact

On the London Metal Exchange, copper for delivery in three months rose 6.1 percent to close at $8,145 a metric ton ($3.69 a pound) at 6:32 p.m. This week, the commodity has jumped 14 percent, poised for the biggest increase since Bloomberg data starts in April 1986.

Copper futures for December delivery advanced 5.8 percent to $3.692 a pound on the Comex in New York. This month, the price has surged 17 percent, heading for the largest gain since March 2009.

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Commodities Erase 2011 Gain on Faltering Recovery

Crude-oil futures fell to the lowest level in five months on the New York Mercantile Exchange. On the Comex in New York, silver for September delivery fell as much as 6.2 percent, and copper futures dropped to a one-month low.

Commodities slumped, erasing gains for the year, on growing concern that the global economic recovery is faltering.

The Thomson Reuters/Jefferies CRB Index of 19 raw materials slumped 2.4 percent to 329.31 as of 1 p.m. in New York, led by declines in silver, energy and nickel. A settlement at that level would leave the index down 1 percent for the year.

via Commodities Erase 2011 Gain on Faltering Recovery – Bloomberg.

Nickel Pig Iron Output in China May Jump, Capping LME Price

Refined-nickel futures on the London Metal Exchange have lost 8 percent this year, outpacing declines in copper, tin, and zinc, while lead and aluminum have gained. Nickel traded at $22,775 per ton on the LME at 8:03 a.m. in Singapore, 23 percent lower than the 34-month high of $29,425 set on Feb. 21.

Nickel pig iron output in China, the world’s largest metals user, may surge 50 percent this year, possibly curbing demand for the refined product and hurting prices that have lagged behind all other base metals in London.

Production of the low-cost substitute for refined nickel may be 240,000 metric tons in 2011 compared with 160,000 tons in 2010, according to Xu Aidong, senior nickel analyst at Beijing Antaike Information Development Co. Output in China in April was 25,000 tons compared with the average of 20,000 tons per month in January to March, said Xu.

via Nickel Pig Iron Output in China May Jump, Capping LME Price 1 – Bloomberg.com.