- Write by:
-
Tuesday, August 16, 2022 - 13:39:48
-
673 Visit
-
Print
Mining News Pro - The volume of nickel traded on the London Metal Exchange (LME) dropped more than 40% in July as funds, consumers and producers continued to shun the market – months after trade was suspended for more than a week in March as prices dramatically spiked.
Traders say many previous participants of the market worry they may be buffeted by price volatility again, while others believe the type of nickel traded on the LME is no longer representative of the global market.
The world’s oldest and biggest market for industrial metals cancelled billions of dollars in trades on March 8 after prices spiked by more than 50% in a matter of hours to a record above $100,000 a tonne.
Average daily LME traded nickel volumes fell to 34,962 lots or 209,772 t in July, down nearly 42% from the same period last year. In January and February nickel volumes rose more than 22% and 23% respectively.
“Volumes are down generally (on metals markets) partly because of global slowdown, but nickel has an extra burden,” a metals trader at a natural resources fund said. “People are still nervous about trading it on the exchange.”
Sliding volumes and open interest — the number of outstanding contracts due to mature or be rolled over at the next settlement date — mean low liquidity, which can exaggerate price moves.
“We have low volumes and open interest and a market that is becoming more illiquid by the day,” a nickel trader said, adding that illiquidity had driven away some fund business.
The chaos in March and a sense that the LME contract no longer represents the nickel market have meant many consumers and producers are avoiding the exchange, traders say.
According to Macquarie analyst Jim Lennon, nickel that can be traded on the LME amounts to around 600 000 t or 19% of global supplies at more than 3.1-million tonnes this year.
The remainder is nickel pig iron and ferro nickel used to make stainless steel. Nickel is also a key material for the batteries that power electric vehicles.
Short Link:
https://www.miningnews.ir/En/News/621988
Glencore expects profit at its trading division this year to be at the top end of its long-term annual guidance, in an ...
Eramet subsidiary SLN’s nickel mining operations in northern New Caledonia have been suspended, adding to difficulties ...
Brazilian miner Vale on Wednesday said lower prices for iron ore, nickel and copper in the first quarter dragged down ...
BHP Group Ltd. proposed a takeover of Anglo American Plc that values the smaller miner at £31.1 billion ($38.8 billion), ...
Interros, Nornickel’s largest shareholder, on Monday called allegations by fellow shareholder Rusal about undervalued ...
The London Metal Exchange (LME) on Saturday banned from its system Russian metal produced on or after April 13 to comply ...
French mining group Eramet said on Wednesday it had reached an agreement with the French government to continue its ...
Copper jumped to its highest intraday price since January 2023 as the bellwether industrial metal faces rising tighter ...
A US and European Union push to reach an accord on fostering critical mineral supply chains is set to miss another ...
No comments have been posted yet ...