Nickel/Nickel at a crossroad

摘要

At first sight there has been little change in the nickel market over the last month. LME prices have remained at historically high levels of close to 50,000 dollars/t, stocks are still extremely low and consumption continues to be strong. But beyond an initial glance, there are worrying signs for future nickel demand and supply. Dominating events in recent weeks has been evidence that the stainless boom in the USA and Western Europe has faded sharply and this is prompting suggestions that nickel could be heading for a weaker phase during the summer months. Exacerbating these concerns are signs that production of nickel pig iron in China may start to accelerate dramatically.