Macquarie Group Says Financing for Nickel “Hoovering Up” Supplies

Bloomberg reported that Macquarie Group Ltd said the financing accords that involve nickel help absorb a glut of the metal used in steel production and supporting prices.

As quoted in the market news:

While $15,000 a metric ton should represent a floor this year based on fundamentals, prices are unlikely to fall below $16,000 because of the extent of financing of stockpiles, said Jim Lennon, head of commodities research at Macquarie in London. Nickel for delivery in three months fell 1.7 percent to $16,935 at 4:53 p.m. on the London Metal Exchange.

Click here to read the full Bloomberg report.