Nickel Supply: Demand Picture Hitting Prices, China Stainless Down

Nickel prices and nickel inventory continue to diverge, as stainless prices drop accordingly on MetalMiner’s weekly stainless steel price index.

Even though Indian and LME nickel prices appreciated slightly over the week on the MetalMiner IndX℠, our friends at the Copper Journal note in their weekly report that LME nickel prices have fallen 13.1 percent so far in 2012.

On the inventory side, nickel supply reflected in LME warehouse stocks has risen dramatically. In the year to date, LME nickel stocks have shot up by 47.6 percent compared the same period the year before.

The cash price of primary Indian nickel rose 1.1 percent after falling 0.3 percent during the previous week. The nickel spot price rose 0.3 percent on the LME to $16,010 per metric ton after falling 2.1 percent during the previous week. The 3-month price of nickel rose 0.2 percent on the LME to $16,050 per metric ton after falling 2.2 percent during the previous week. The price of Chinese primary nickel, however, fell 0.4 percent.

The week’s biggest mover on the weekly Stainless MMI® was the price of Chinese 316 stainless coil, which saw a 1.4 percent decline. Meanwhile in Japan, output of hot-rolled stainless steel continues seeing a downward trend, according to the Tex Report.

The price of Chinese 304 stainless steel scrap fell 0.6 percent after rising 0.6 percent the week before. Following a 0.6 percent increase in the week prior, the price of Chinese 304 stainless coil fell 0.6 percent last week. This was the fourth week in a row of declining prices. Chinese 316 stainless steel scrap traded sideways last week.

Chinese ferro-chrome remained essentially flat from the previous week. Chinese ferro-moly also remained unchanged for the week.

The week finished with no movement for Korean 430 stainless steel coil. Korean 304 stainless coil prices held steady from the previous week as well.

Note: The Stainless MMI® collects and weights 14 global stainless steel and raw material price points to provide a unique view into stainless steel price trends. For more information on the Stainless MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.