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LME Ni Inventory Takes Upward Turn and Surpasses 430,000 Tons
= Large quantities are put in designated warehouses in Taiwan everyday =
LME nickel inventory marked a record of 438,474 tons at the time of trade closing on December 15 (at the time trade opening on December 16), and made an about-turn from the declining trend which continued until the very beginning of December, which led to the sharp increase of more than 45,000 tons in a short period like 7 working days, and the massive inflow into the designated warehouses in the Asian region such as Kaohsiung (Taiwan), Malaysia and Singapore is noticeable.

LME nickel inventory level showed a clear declining trend during November and dropped to 393,228 tons on December 8. However, it took an upward turn next day and marked abrupt increases during December such as 6,660 tons on 9th, 6,420 tons on 10th, 2,706 tons on 11th, 14,502 tons on 14th and 14,958 tons on 15th.

The main factors for this abrupt increases are massive inflows into the designated warehouses in the Asian region, and especially in Kaohsiung, there were extraordinary inflows like 14,904 tons on 14th and 16,542 tons on 15th.

The following is provided as the causal analyses which vary according to the market percipients such as (1) As the purchase of nonferrous metals like nickel and aluminium China Nonferrous Metals Industry Association proposed to the government was not realized, the speculators who expected a price hike took a turn to selling, (2) As the effect from the slowdown in the Chinese economy is reaffirmed and the decrease in the nickel consumption becomes clear-cut, the selling activities become more and (3) Albeit the word spread that the nickel price would touch the bottom and its supply would become tight, currently the selling activities turned to the buying ones due to the forecast of continuing cheap resource prices and continuing tight supply of nickel. Besides, there is a story that as the Government of China strengthens the movement to bust malicious speculative groups, there have been bulk sales to clear assets.
last modified : Thu 24 Dec, 2015 [09:53]
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