The Conversation (0)
A brief overview of nickel price developments, supply and demand, and significant market movers.
Nickel prices have drifted downward on the London Metal Exchange over the past month, from $17,835 US a tonne on April 30 to $16,980 US a tonne on May 29.
A number of factors have been weighing on prices, including concern about economic instability resulting from a potential Greek exit from the Eurozone and slowing demand in China, the world’s leading nickel consumer.
Investors are also concerned that nickel inventories will grow if demand fails to pick up. Adding to these worries is the fact that a number of new mines are set to start up later this year, including the Ambatovy project on the island of Madagascar, which is expected to produce 60,000 tonnes of nickel annually.
On a positive note, The Economic Times reported that nickel futures rose by 0.06 percent, to Rs 941.50 per kilogram, in New Delhi on May 29 thanks to higher demand from alloy producers and a firming trend in other base metal prices.
