up by 16 percent this week against the previous week due to production
cuts and investment buying.
Nickel futures on London Metal Exchange (LME) closed up 16 percent at
$12,725 per ton after making a high of $12,844. On MCX, the April
contract closed up 15 percent at Rs 633 per kg against last week's close
at Rs 550.8.
Global production cut of the metal is expected to be 20 percent this
year which is driving up the prices despite a weak demand from the steel
industry. There has been over 33 percent increase of the LME inventories
on a year-to-date basis that shows there is low demand for the metal.
Nickel price also got support from the movement in global equities
market.
Severe production cuts have pulled out around 20 percent of nickel
supply from the market and this is the real cause for the rise in prices
rather than improvement in demand.
http://economictimes.indiatimes.com/Market-News/Nickel-up-on-production-
cuts/articleshow/4419233.cms
-----------------------------------------------
Not really production cuts but largely investment (speculative) buying.
Nickel prices rose because of investment buying by the Chinese in
anticipation of government buying of the metal similar to that of copper
(China's strategic reserve buying(SRB) of copper has moved up the red
metal by some 40% in the last seven weeks or so). Investors (or
speculators) also expected that the metal would go up due to (China's)
fiscal stimulus related demand.
Nickel 30 day chart
http://www.kitcometals.com/charts/nickel_historical_large.html#30days
No comments:
Post a Comment