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LME Ni Average Price in June Up by 3% from Prior Month
= Inventory level dips below 380,000 tons =
LME monthly average nickel price in June 2016 was <> Cash seller: US$8,915.45 per ton (US$4.044 per lb) and <> 3-month seller: US$8,962.00 per ton (US$4.065 per lb). When compared with the average price in May, both prices for cash seller and 3-month seller were up by 2.6%. (Hereinafter, the price is per ton)

There were UK's referendum whether to leave or remain in EU and resulting confusion in the market in May, but LME nickel price maintained an upward trend from the beginning to the end of the month. The lowest and highest prices for 3-month seller were US$8,365 at the beginning of the month and US$9,475 at the end of the month respectively, and the difference was US$1,110.

The price made 5 large increases during the month and showed movements such as (1) On 6th, weak dollar attributed to flagging possibility of FRB increasing an interest rate, (2) On 10th, the momentum toward going on a strike at South32's Cerro Matoso nickel mine increased, (3) On 15th, weak dollar attributed to growing possibility of FRB keeping a political interest rate as it is, (4) On 21st, according to the public opinion survey in UK, the group to insist remaining in EU drew increasing support and the atmosphere of risking on in the market grew and (5) The market took a nosedive on 24th due to a shock of UK group to insist leaving EU winning in the national referendum, but rebounded on the next day and continued rising until the end of the month, which resulted in marking the second highest price for the year on 30th.

For reference, the inventory level in LME designated warehouses showed a declining trend ongoingly and the month-end inventory level (at the time of trade closing on June 29) was 379,338 tons, down by 22,170 tons from the end of the last month.

The trends in the monthly average price and month-end inventory level are as shown in the table below.
data image
last modified : Fri 08 Jul, 2016 [09:34]
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