NEW YORK Melting-grade nickel premiums are steady in a
range of 15 to 25 cents per pound, with one producer reporting
that low official nickel pricing has enticed some smaller
consumers to the spot market.
The London Metal Exchanges three-month nickel contract
closed the official session at $15,230 per tonne ($6.91 per
pound) April 25, down 5.1 percent from $16,055 per tonne ($7.28
per pound) April 11.
The majority of market participants told AMM that the
historically low premiums and official pricing had failed to
boost spot purchases, although one producer reported otherwise.
Theres been some more activity due to low nickel
prices on the LME, but the premiums are unchanged. I think
its due to some people wanting to take advantage of the
lower nickel prices, he said.
People make such a big thing of the premium, but
its less than 1.5 percent of the total price. The LME
dropping $1 per pound is a much bigger deal, the producer
Itll be a long time before those premiums
move, he added.
Traders told AMM that chronic global oversupply continues to
We havent had a nickel inquiry now for two
weeks, one trader said. Its preposterous.
Its really that quiet.
Plating-grade nickel premiums were also unchanged at 50 to 60
cents per pound.