European buyers stayed on the sidelines in the week to Tuesday September 3 after the London Metal Exchange nickel price hit a five-year high, and caution later spread to buyers in the United States.
Europe sees little spot trade with metal prices soaring on fears of future shortages. US briquette premiums rose on the low end, but market does not expect it to last. Asian premiums fall on worsening arbitrage conditions. Higher prices limit spot physical demand in Europe Rotterdam nickel premiums were steady in the latest pricing session with rising futures prices yet to affect the physical market there. The nickel uncut cathode premium, in-whs Rotterdam paid on top of LME cash prices stayed at $200-230 per tonne on Tuesday, a level it has maintained since June 25. The nickel briquette premium in-whs Rotterdam is also flat at $200-250 per tonne, unchanged since May 21. European buyers said they were less inclined to make spot purchases due to the sharp increase in the LME three-month nickel price, which hit a five-year high of $18,850 per tonne on Monday. The LME three-month contract, which is up...