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| LME Nickel Prices Rise Higher Levels For Purchases By Funds After Interval Of 4 Months |
| Higher Prices Of Base Metals And Weakened Ex. Rate Of US-Dollar Have Triggered To Rise Nickel Prices |
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Owing to the speculative purchases by funds as seen clearly from the middle of last week, LME nickel prices at the 9th of January soared up to a nearer level to US$15,000 per ton ( for three-month futures ). Namely, LME nickel prices as of the 9th were <> US$14,645 per ton ( US$6.643 per lb. ) for cash and <> US$14,725 per ton ( US$6.679 per lb. ) for three-month futures. In the course of that LME prices of such nonferrous metals as copper, zinc and so on have risen steeply, LME nickel prices easily broke a level of US$16,500 per ton ( for three-months futures ) as assumed to be a higher resistant line and, consequently, the funds concerned are more interested in further purchases of LME nickel, having caused to rise the prices to a nearer level to US$15,000 per ton ( US$14,975 per ton ). The fundamentals on supply and demand of nickel have still remained unchanged. This aspect is due to the matters, which the demand for nickel from super alloy sector has been maintained on a firm tone but the production of stainless steel, having shared 65% of nickel consumption, has been depressed. Nevertheless, LME copper price recorded US$4,595 per ton ( for three-month futures ) as the highest one in the past years and LME zinc price also rose steeply for the suspension of zinc production in Mexico as informed. Accordingly, these higher prices of nonferrous metals have stimulated to rise nickel price. The funds concerned have judged that nickel price is low in comparison with prices of nonferrous metals at present Also, by having felt a repugnance to the fact that the US situation of employment ( statistics ) was unexpectedly not improved, the exchange rate of US-Dollar against Euro currency has weakened and this new development of the strengthened Euro rate has become a factor to review prices of LME commodities. There is a strong view in the market as seen from October - December quarter of 2005 that the world production of stainless steel will recover in 2006. Many of the parties concerned have pointed out that the excessive stocks of stainless steel products in China and Europe are in the direction to resolve and the production of stainless steel is expected to turn to an upward trend, mainly in Europe, from January - March quarter of 2006. However, some of them also said that this recovery of the production has a possibility to delay to March - April. An evidence, which the fundamentals on supply and demand of nickel are still unable to improve, is that LME nickel stocks are continuing to increase on a basic tone and the nickel stocks at the 6th of January increased to 36,756 tons. For a reference, a nickel premium in the USA ( on spot base ) has been unexpectedly stabilized and is 34 - 36 US-Cents per lb. for melting grade and 46 - 48 US-Cents per lb. for plating grade respectively. Also, this nickel premium for yearly contract has been settled by a level of 20 - 25 US-Cents. |
| last modified : Mon 16 Jan, 2006 [11:57] |
