Nickel prices are slowly declining, time to buy
2022.11.16 14:28
[ad_1]
Nickel prices are slowly declining, time to buy
Budrigannews.com – The London Metal Exchange (LME) announced that it was stepping up its monitoring of the nickel trade after prices fell by 12% in unstable and illiquid conditions.
The decline came after a furious rally in which the metal used to make stainless steel jumped 40% in just two weeks and exceeded the LME’s daily limit of 15% on Monday.
Traders blamed the low liquidity for the most severe volatility since May. On May 8, the London Metal Exchange (LME) canceled all nickel transactions and suspended the market for more than a week after the price doubled in a few hours.
“The lme is focusing on the current volatility of nickel,” the exchange said in a statement. “The established price ceiling is working as expected and the LME is carrying out enhanced monitoring to ensure that the trading activities of the participants are carried out correctly.”
Other industrial metals, such as zinc, also rose due to expectations that China would abandon its zero-emission policy, slow the pace of US interest rate hikes and stimulate economic growth and demand for metals, but this measure is only a small part of nickel.
The Shanghai Futures Exchange (Lme) said traders and speculators in the spot market bought the metal to reverse short positions.
When those contracts expire, the need to buy evaporates and creates downward pressure on prices, he said, and Chinese buyers are more cautious as nickel heads toward 30,000.
In addition, it was announced that the New Caledonian nickel producer Plony Resources would reduce its production after a leak at the tailings dam.
The benchmark LME Nickel index recorded six consecutive gains during the month. 8 and Nov. On the 15th, it started at 123,330 tons and finally reached 131,275 tons.
At 1852gmt on Wednesday, nickel was down 11.8% at 26,700 tonnes.
[ad_2]
