8 December 2022 – Nickel continues to rise significantly. On Wednesday, 7 December 2022, alone by more than 7.4%. This means that the important stainless steel and battery metal is already up almost 24% since 25 November 2022. The LME commodity exchange is under increasing pressure and apparently can no longer keep up with the many construction sites. And some of the Taiwanese stainless steel mills are already fully booked.
Nickel jumps up by more than 7.4%
Nickel on the London Metal Exchange (LME) closed up more than 7.41% yesterday, Wednesday. Nickel futures on the Asian SHFE have followed suit, rising about 4.5% on average.
The important stainless steel and battery metal is already up almost 24% since 25 November 2022. Nickel also appears to be continuing its rise so far in today’s trading on the LME, and was already up more than 6%, or well over $33,000 per tonne, shortly after 10am CET.
LME under pressure
The LME is coming under increasing pressure following the suspension of nickel trading in the Asian time frame. According to a recent Reuters report, Chinese nickel buyers are trying to impose the Shanghai Futures Exchange (SHFE) as the main trading venue for nickel futures for 2023.
Too many construction sites for the LME?
At the same time, the LME is still struggling to clean up the fiasco from March 2022. Its own review result is pending, and official authorities are also scrutinising the LME. In addition, there are claims for damages from traders who suffered heavy losses due to the LME’s intervention in March and the halt in trading. Rumours about possible takeover bids from the CME and the Intercontinental Exchange (ICE) to the parent company HKEX in China add to the difficulties.
Taiwanese stainless steel mills well booked
Taiwanese stainless steel mills are currently reporting well-filled or full order books and a good market situation. Many customers are currently filling up their empty stocks, the demand before the Chinese New Year is good to place orders quickly.
Some other Asian manufacturers had announced that they would cut production of stainless steel, which could lead to tighter availability.
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