Saturday, December 20, 2014

What are the factors behind sharp rise in LME Nickel inventories?

What are the factors behind sharp rise in LME Nickel inventories?
Inventories in the LME nickel have kept growing, climbing above 400,000 tons recently. 

The launch of a probe into financial irregularities at China’s Port of Qingdao in June brought nickel inventories at Asia-registered LME warehouses up 94,000 tonnes during June-November, 3-fold higher than the growth of 29,000 tons during January-May, according to SMM data.

Hence, the impact from Qingdao’s metal fraud is believed to be one of major reasons behind high LME nickel inventories, prompting a shift from China’s bonded zones to LME Asian warehouses.

Nickel inventories also grew at LME European warehouses, meanwhile. From June to November, stocks added 27,000 tonnes, compared with a drop of 5,000 tonnes from January to May.

This suggests that waning global consumption, resulting from concurrent economic weakness, is also blamed for continuous increases in LME nickel inventories. 

No comments:

Post a Comment