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LME Ni Average Price in June Down by 2% from Prior Month
= It shows upward trend although swinging up and down wildly, and month-end inventory continues to be down =
LME monthly average nickel price in June 2017 was <> Cash seller: US$8,930.68 per ton (US$4.051 per lb) and <> 3-month seller: US$8,988.18 per ton (US$4.077 per lb). When compared with the average price in May, the prices for both cash seller and 3-month seller were down by 2.4% and down by 2.2% respectively. (Hereinafter, the price is per ton)

LME nickel price in June (cash seller) continued swinging up and down wildly, but basically showed an upward trend, and the comparison of the prices at the beginning and the end of the month was being up by US$470 for cash seller and being up by US$475 for 3-moth seller, in spite of which the reason why the average monthly price in June was down from May was because the price stagnated in the former half of June and the price at the end of the month was lower than the one at the beginning of May. As the Government of Indonesia permitted PT Antam to export 165,000 tons of low-grade nickel ore to China at the end of May, the market participants thought the supply and demand for nickel would get eased, which led to a sharp drop in LME nickel price, and it takes time to make a recovery.

The transition during June was (1) At the beginning of the month, the price for cash seller started with US$8,830 following a sharp drop at the end of May, (2) The price dropped to such the lowest price during the month as US$8,715 on the next day, June2, (3) The price rose to US$8,940 on the next working day, June 12 as a result of a price hike in LME copper price on June 9, (4) However, the price again dropped on the next day, June 13 and was down to US$8,720 as there was such movement as the regulation on mines in Philippines would be eased, (5) LME nickel price rebounded because the Chinese economy was better than anticipated in the market and the price of steel products went up, (6) As INSG announced on June 22 that the supply and demand balance for nickel in April was in a state of short supply of 3,200 tons (net), the price rose drastically on the next day, June 23, (7) The market reacted favorably to such announcement made on June 27 as the profit earned by the industrial division of China was up by 16.7% from the year-earlier month, and LME nickel price also rose once again, (8) US$9,280 at the end of the month was the highest figure during the month but (9) As mentioned above, the price could not make a recovery to the US$9,400 line as the level at the beginning of May.

For reference, as to the inventory level at LME designated warehouses, there were many substantial deliveries and the month-end inventory was 372,228 tons, down by 12,738 tons from the end of last month (384,966 tons).

The transition of the monthly average price and month-end inventory level are as shown in the table below.
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last modified : Mon 10 Jul, 2017 [10:22]
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