Who's watching the nickel price?

The current nickel price appears to be falling fast. From a recent high of $29,400 per tonne in February 2011, the LME nickel price has tumbled to just $21,650 / tonne today, with some analysts worried that nickel may soon breach the $20,000/t level. Expanding supply of the metal seems to be the cause of these price movements – especially from China where production of 'nickel pigs' [iron units made from low grade pig iron produced from laterite ore] is reportedly growing fast.

 

One wonders of course whether stainless steel prices will be following suit. Meanwhile for further comment, see http://www.ft.com/cms/s/0/a8ee7776-9846-11e0-ae45-00144feab49a.html#axzz1PSHz1uyD.

 

blogger@steelonthenet.com