SG:Nickel declines in London on prospects for increased supplies
Bloomberg reported that Nickel fell in London for the first time in 3 sessions on signs that the highest inventories since 2010 will leave ample supplies as mining projects boost production of the metal used to make stainless steel.
Commerzbank AG said that “Stockpiles monitored by the London Metal Exchange have climbed 7.8% this year signaling demand is lagging behind output. Inventories reached 150,906 tonne the highest since April 2010. Rising demand from China which produces about 44% of the world’s stainless steel won’t be enough to lift prices.”
Analysts including Mr Daniel Briesemann at Commerzbank in Frankfurt said that “Supply will no doubt easily keep pace with demand as a number of major mining projects are currently being commissioned. We therefore see limited scope for the price of nickel to rise.”
Nickel for delivery in 3 months declined 0.1% to settle at USD 18,700 a tonne. In the past 12 months prices are down 12% the most among 6 metals tracked by the exchange’s LMEX Index.
