Nickel Hope for the best but prepare for the worst

摘要

In the last couple of issues, we from KCTL Research have been providing a bleak outlook foi the worst performing industrial metal at the MCX - nickel. Nickel June futures prices have retreated by 8.42% since the beginning of the year while the stocks monitored by the LME bonded warehouses have increased 28.71% in the same duration. Concerns of oversupply, weak global manufacturing activity and slowing stainless steel production coupled with concerns of deflation have pressurized nickel prices. In the month of May '13, nickel prices declined 3.67% at the LME while the stocks inched up from 1,77,036 MT to 1,79,796 MT up by 1.56% indicating slowing consumption demand.