Financial Daily from THE HINDU group of publications
Thursday, May 12, 2005

Port Info

Group Sites

Agri-Biz & Commodities - Metals

Nickel price may increase further

G. Chandrashekhar

Mumbai , May 11

TIGHTNESS in the nickel market is set to continue because of a combination of supply and demand factors.

This is likely to encourage the price prospects in the base metals complex given nickel's price leading abilities in the past, experts said.

Major producers are unable to take advantage of supply tightness for various reasons including infrastructure problems, maintenance shutdown, labour contract negotiations and so on. Warehoused inventory levels are shrinking.

Although demand from the stainless steel industry has softened recently partly because of high prices, import demand from China remains robust after a lengthy period of de-stocking at stainless steel mills last year.

Currently, the metal is trading at around $16,750 a tonne and the market is in backwardation ($1,000 a tonne cash third month) with stocks at LME less than 3,000 tonnes.

A break above the technical resistance of $17,050 a tonne will be required for nickel to form the next leg higher at $20,000 a tonne, but that threshold level looks distinctly under threat, according to Ms Ingrid Sternby, base metals analyst with Barclays Capital.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
UAE securities body to control Dubai gold bourse

NCDEX launches initiative to support tribal farmers
Labland Biotechs to supply jatropha saplings to Saudi Arabia
Japan alert on banned antibiotics — Govt steps up vigil on shrimp shipments
Call to retain 65-day ban on fishing by mechanised boats in Karnataka
RBI working group calls for Warehouse Receipts Act
Selling keeps rubber prices on leash
Ethanol-blended petrol programme — We responded to Petroleum Ministry's draft MoU, says ISMA
Nickel price may increase further
Centre to raise outlay for improving cotton quality to Rs 500 crore
Organic vanilla fetches premium in US market
`Raise small farm productivity to ensure food security'

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line