Nickel prices on the London Metal Exchange fell by 1.7% at the close of trading on Friday July 6, ending the week more than 4% lower while ongoing macroeconomic pressure continues to hinder the complex.
Closing below $14,000 per tonne for the first time since April 13, nickel prices continued to suffer against a backdrop of falling LME inventory. Total LME nickel stocks are at their lowest since 2014, with the metal's cash/three-month spread in a contango of $94.50 per tonne, the widest since October 2017. "The orderly pullback in the LME nickel price suggests this may be a short-term consolidation from the recent rally," Metal Bulletin analyst Andy Farida said in his Nickel Today report."This is because nickel still has a bullish fundamental backdrop. The market deficit, falling global stocks level and robust stainless steel demand from China should...