In world market metals are used most widely in every production area. Nickel is one of the unavoidable metals used in stainless steel production. A recent study showed that for next few months Nickel prices may lift due to a seasonal rise in demand for Stainless Steel. This sudden rise in demand for stainless steel will starts from beginning of the next year to middle of the year.
Nickel, an ingredient of stainless steel, has already seen high prices on the London Metal Exchange shake off a weak performance current year, running ahead of other metals in recent years. But this high price won’t stay for long due to output from major new mines gearing up and a surge in Chinese pig iron output fuelled by cheap Asian ore.
Expert people like Nic Brown, head of commodities research at Natixis in London, also quite confused about the time span of this sudden rise. He said, “There could be a little bit of seasonal pick up, but I struggle to see how nickel prices can improve significantly next year”.
Nickel ore comes from both Indonesia and Philippines in substantial amount and definitely in a cheap price. Therefore additional supply for big Nickel projects around the world. So far in this year according to statistics Nickel is the worst demanding metal compared to other six LME base metals. Nickel lost its value very slowly since hitting a peak of $51,000 per ton in May 2007. But over the past two weeks, Nickel was the most demanding metal of the all.
This seasonal boost in Nickel price rise is due to some investors buying back short positions. During previous four years price of stainless steel rises in the beginning of the year due to this seasonal buying. Therefore keep an eye on the market if you are interested buying Nickel.