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A brief overview of nickel price developments, supply and demand, and significant market movers.
Spot nickel prices have continued to move lower on the London Metal Exchange over the past month, from around $16,815 US a tonne to $16,180 US a tonne on July 10.
One factor weighing on nickel prices is the ongoing oversupply of the metal. “Producers have an overhang of material without a lot of spot business coming in to take any additional tonnages they might have,” one US trader told Reuters.
In addition, demand from China, the world’s top consumer, is slowing. The country’s refined nickel imports dipped 30 percent in April, to 48,720 tonnes.
On Friday, July 6, the metal fell 3.3 percent on the U.S. Labor Department’s report that the country’s economy produced 80,000 jobs in June. That was short of the 100,000 positions that analysts were expecting.
Investors were also disappointed that the negative report wasn’t enough to prompt the Federal Reserve to undertake another round of quantitative easing to stimulate the country’s economy.
Spot nickel prices have continued to move lower on the London Metal Exchange over the past month, from around $16,815 US a tonne to $16,180 US a tonne on July 10.One factor weighing on nickel prices is the ongoing oversupply of the metal. “Producers have an overhang of material without a lot of spot business coming in to take any additional tonnages they might have,” one US trader told Reuters.
In addition, demand from China, the world’s top consumer, is slowing. The country’s refined nickel imports dipped 30 percent in April, to 48,720 tonnes.
On Friday, July 6, the metal fell 3.3 percent on the US Labor Department’s report that the country’s economy produced 80,000 jobs in June. That was short of the 100,000 positions that analysts were expecting.
Investors were also disappointed that the negative report wasn’t enough to prompt the Federal Reserve to undertake another round of quantitative easing to stimulate the country’s economy.
