Nickel

摘要

LME nickel prices continued their sustained ascent in February underpinned by a persistent fall in LME stocks. The LME cash price rose to a four month high breaking both the 15,000 dollars/tonne and 16,000 dollars/tonne barriers in the process to close February at 16,375 dollars/tonne. March prices remain at high levels, of above 16,000 dollars/tonne, not withstanding an intermittent dip on March 2~(nd) when prices fell 730 dollars/tonne before quickly recovering on the 3~(rd). There is some surprise on the part of market traders that the persistent cancellation of nickel warrants has not resulted in prices rising further still, although the lack of physical buying interest and weak spot purchasing suggests that market demand has yet to recover from the slowdown of the last few months. This has led to a great deal of market conjecture that not all the nickel withdrawn from LME warehouses is in fact earmarked for immediate consumption. Some traders have suggested it is possible that a portion of this material is being held by speculators in an attempt to drive LME prices up further. The feeling is that the nickel will eventually be sold back to the exchange once physical demand increases and long positions are covered. Meanwhile, other traders suggest that this material is in fact making its way to storage in non-LME registered warehouses in China, or elsewhere in Asia, where it will eventually be consumed once new stainless steel production capacity comes on stream later this year.