LONDON (Scrap Monster): One third of global, produce of Nickel disappeared in just a few days. Nickel prices rose so suddenly, when the investor's hoped a sudden decline. Even so, Chinese Nickel Pig Iron (NPI) has been stocking the metal.
To the investors' distress and producers' shock, the price never declined but increased to a higher extend. China has been stocking their supplies with rapture quality Indonesian product. Vietnam, Zimbabwe and Brazil have also increased their production in concentrates but it is Philippines that took place in Indonesia in exporting the outpour of their low graded metal in this financial year.
Ferro - nickel is also said to be flourishing this year. First time seven months the production has been doubled to 159,000 metric tons, along with that, scrap prices are also up. Citi Estimates states that, currently the nickel scraps are trading in LME at a discount 83-86%, and in Asia it is highest at 90%, from 70-75%. Even though, the market has declined in nickel and its concentrates like, ferro – nickel, in LME nickel is hitting records.
Nickel inventory on the London Metal Exchange, has risen to 63,000 tons from 324,714 tons, that is about 23% increase, since the beginning of this year. Apparently more than half of this supply is coming from China.