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.

 

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Metals and mining industry developments in China

In a remarkable series of reports in recent weeks, it is emerging that top Chinese iron and steelmakers (e.g. WISCO or Wuhan Iron and Steel Company) are starting to diversify away from their core businesses of iron and steelmaking, into non-steel areas such as the production of wine and management of real estate. China’s steel sector is known to have significant overcapacity as well as a lot of highly cost-inefficient plant. Surely it would seem a bit more sensible for Chinese policymakers to concentrate on tackling some of the internal overcapacity and competitiveness issues, rather than trying to bolster steel sector profit margins by moving into completely new business areas such as wine making?

More information on this topic and related steel news on our website at Steelonthenet.com or for more on the WISCO story see http://english.people.com.cn/90001/90778/90860/7370359.html.

 

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2010 iron ore price

Well, it looks like the benchmark 2010 iron ore price settlement will be somewhere near 30% above year 2009 price levels. That at least is the comment of http://au.news.yahoo.com/thewest/business/a/-/wa/6636140/soaring-spot-price-bring-cheers-for-iron-ore-miners/ according to the latest views from those in the know in China.

More news on this pricing topic as we hear …

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Time for a steel pricing correction?

According to Daily News Analysis India, corrections are imminent for steel pricing worldwide. After three consecutive months of falling Chinese steel exports, the stage is set for increases in international steel prices, especially in India. According to DNA India, the China Iron and Steel Association confirms that the recent trend in moderating Chinese steel export volumes is expected to continue through the year.

This reduction in steel supply volumes is to be accompanied by reduced steelmaking output in America. The report observes that recent production cuts in the USA are likely to allow price rises in the coming months.

For original article, see http://www.dnaindia.com/report.asp?NewsID=1115154.

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