LONDON, Dec 5 (Reuters) – The nickel price bubble is slowly deflating but bears would be advised to tread carefully with a sharp fall in LME inventory threatening a repeat of the time-spread turbulence that rocked the London market in late September.
London Metal Exchange (LME) nickel surged to a five-year high of $18,850 on Sept. 2, from $12,000 per tonne at the start of July, as Indonesia brought forward to a ban on exports of nickel ore to January.
But the exuberance has dissipated with short-term fund money pulling out to leave LME three-month metal around $13,100 per tonne currently. While nickel may be on the electric vehicle (EV) investment grid because of its use in lithium-ion batteries, an old driver is reasserting itself – namely the state of the stainless steel market. Continue Reading →