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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 06/12/2007 : 20:33:40
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Nickel Declines to Three-Month Low on Signs of Slowing Demand
By Chanyaporn Chanjaroen
June 12 (Bloomberg) -- Nickel fell to the lowest price in more than three months in London on signs that demand for the metal used in stainless steel probably slowed while supply increased.
Orders to be withdrawn from London Metal Exchange-monitored stockpiles dropped 8.6 percent to 444 metric tons, exchange data showed today. The so-called canceled warrants have declined 32 percent this month. Nickel inventory has jumped 90 percent so far in June.
``Current prices are still too high,'' because supplies will increase, said Andrew Silver, a trader at Natixis Commodity Markets Ltd., one of 11 companies trading on the floor of the LME.
Nickel for delivery in three months fell $2,450, or 5.8 percent, to $40,050 a ton on the LME, after earlier dropping $2,700 to $39,800, the lowest price since March 5.
The metal has lost 12 percent since June 6, the day before the LME tightened regulations to ensure stockpiles tracked by the exchange aren't concentrated in the hands of a few companies.
The price of nickel will probably drop by half in coming months because of increasing supply, Alan Heap and Alex Tonks, Sydney-based analysts for Citigroup Inc., said June 6. There will be a surplus of 1,000 tons this year and 48,900 tons in 2008, the bank forecast. Supply lagged behind demand by 14,100 tons last year, it added.
Rising Inventories
LME-monitored inventories climbed 42 tons to 8,922 tons, the exchange said today, bringing total increases this year to 34 percent.
One company held between 30 percent and 39 percent of LME nickel stockpiles and another had 40 percent to 49 percent as of June 8, according to the latest LME data. As of June 5, the data showed one company holding 50 percent to 79 percent, and another had 30 percent to 39 percent.
Among other LME-traded metals, aluminum fell $25 to $2,699 a ton, lead declined $20 to $2,325 a ton, and zinc slid $40 to $3,710 a ton. Tin was unchanged at $13,975 a ton, and copper dropped $185 to $7,175 a ton.
.......(It seems that prices decline in late spring/early summer. What will the future hold for metals? Who knows, but demand is not going away any time soon. Best to hang thight and ride out the declines until autumn and winter.)
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Precious metals go up, sideways, down
Though it isn't much fun when the prices are going down,
even a little, even temporary
Though it makes for a nice buying opportunity.
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China Data Rattle Gold
By Simon Constable
Excerpt
Metals prices were falling Tuesday after news of higher inflation in China sparked concerns that the government there may try to arrest the economy's growth rate.
Benchmark contracts for gold bullion were losing $5.80 at $653.20 an ounce, while silver was off 13 cents at $13.15 an ounce in recent New York market action.
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Demand for silver weak in Indian market: CPM Group
Industrial demand for silver has been weak, so far, this year, with use
by the photographic sector declining because of the growing use of electronic
imaging. Silver demand has softened in the Indian market, partly reflecting
high metal prices and partly reflecting seasonal weakness, according to the
CPM Group's latest issue of Precious Metals Advisory.
"Supplies are ample, meanwhile, both from newly-refined metal flowing
into the market and from existing market inventories," CPM said. "As a result,
about 9.6 million oz of silver is estimated to have been built up in bonded
warehouses [in India] that have not cleared customs. The banks that were
importing this metal appear to be waiting to see if demand is sufficient
within India to warrant clearing the metal through customs and paying import
duties on it."
The report noted that the banks importing the silver into India were
"hesitant" about taking delivery for fear that "silver prices could spike to
$15 or so, and turn off demand for silver. Thus, they are holding the metal in
customs warehouses."
While demand for silver in the photographic sector continues to decline,
silver used in electronics and batteries has been increasing, according to CPM
estimates. Strong economic growth in developing nations is helping to
stimulate increased use of silver in electronic applications.
According to CPM, investment demand for silver remains healthy. "There
may be instances when high prices deter some investors from increasing their
purchases, but when prices pause and dip lower, these investors begin to buy
again," the report said. "The troughs of these dips has been progressively
higher over the past several months. In other words, silver prices have been
making higher lows."
--Ovid Abrams
I should have chosen "Cut-n-Paste" as a forum name, since that is what I do, mostly. |
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