June 8, 2012 / Nickel Foil
Nickel premiums continue to decline, with melting grade numbers hitting a nine year low as spot activity weakened.
Melting grade premiums fell to between 20 and 23 cents per pound, the lowest level seen since mid 2003.
Premiums have been under pressure this year as suppliers are said to be holding adequate material and there have been no supply disruptions at large mines.
Producers seem to be flexible in increasing contract volumes to their customers.
Even the historically low nickel prices haven’t attracted more customers.
Three month nickel ended the official session on the LME at $16,405 per ton Friday. Prior to May 29th, the contract hadn’t traded below $16,500 per ton since late 2009.
Excerpts from American Metal Market June 11, 2012
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