Nickel/Catastrophic fall in prices triggers extreme margin pressure

摘要

The storm that overwhelmed the global financial market sent startling Shockwaves across the nickel sector and found victims amongst even the most established players. A catastrophic fall in global demand for nickel units, combined with ever-growing quantities of surplus nickel throughout the supply pipeline, caused the nickel price to freefall. In little more than 18 months, nickel prices dived by 43,000 US dollars/t. Demand for primary nickel units is now at levels last recorded in 1999, as the material's largest end-user - the stainless steel sector - faces what is becoming one of the worst market corrections in the industry's history. Nevertheless, whilst a growing number of producers have been forced to announce production cuts due to depressed demand and prices, a serious need remains for further output restraint if the market is to regain some stability.