Nickel prices down to a more sustainable level

摘要

We suggested in April's Nickel Chrome Molybdenum Monitor that while nickel prices were due a pullback at some stage, there was sufficient momentum in the market for prices to rally further. Strictly speaking we were correct: Official cash prices reached a high of 27,600 dollars/tonne on 16th April (one day after publication!), before drifting downwards to around 25,500 dollars/tonne until 5th May when a more significant sell-off took prices down to 22,560 dollars/tonne. Increased risk aversion, prompted by southern European sovereign debt concerns, was the primary cause of the downward shift in prices in early May and was part of a broader sell-off in agricultural and industrial commodities and a number of other asset classes.