Nickel continues to surge higher
The pr
ice of Nickel on the London Metal Exchange closed on Friday up over 14% on the week. With the cash price at 12,425 USD per metric tonne it will add more pressure to increase stainless steel prices. Nickel stocks have declined slightly form their peak this year in excess of 107,000 tonnes to 105,348 at the close on the 16th of April. It is felt that a combination of low Nickel prices and future potential growth in stainless steel demand has led to the aggressive recent growth in the Nickel price.
After a dismal six months for the stainless steel sector, China is forecasting growth in demand of 8% combine this with a severe cutbacks of stainless steel production. The result has to be bigger demand for Nickel in the second half of the year and a strengthening market, we will have to wait and see if these levels hold though as earlier forecast where for Nickel to average lower than this for the year.
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