Nickel/Nickel drops back on fund selling

摘要

After trading in a narrow range of 28,000-30,000 dollars/t since early April, the LME cash nickel price slipped to 27,600 dollars/t on May 8~(th) influenced by a general decline in the LME complex. But the downward move was sufficient to attract selling interest from funds and speculators and the cash price was subsequently driven lower to a level of 26,495 dollars/t by mid-day on May 12~(th). For the time being, there are few visibly upbeat developments in the physical nickel market which would encourage prices to make a swift return to their recent trading range. Demand for stainless steel remains subdued, especially in Asia, and even in Europe, mill orders have softened compared with the first quarter. At the same time, the high level of LME stocks is signalling ample availability of nickel. Under such circumstances, it is possible that nickel prices could continue to lose ground in the short term.