Nickel's three-month price on the London Metal Exchange recovered at the close of trading on Wednesday May 15, climbing back above $12,000 per tonne while the metal's cash/three-month spread moved into backwardation for the first time since 2015.
The metal's cash/three-month spread differential was recently seen in a backwardation of $9 per tonne, while its nearby June-July spread was now trading in a backwardation of $35 per tonne, compared with $14 per tonne earlier this week."There's definitely a dominant position in the spreads, and I think the [LME] forward bandings show that," a Europe-based trader told Fastmarkets.The LME's forward bandings report, published daily, shows one position currently long in nickel for June prompt at 30-39% of stocks.Despite the tight spreads,...