Looking Back and Ahead

Institute of Scrap Recycling Industries, Inc. - January 28, 2011 -- In 2010, metals prices rose across the board. In 2011, we expect metals prices will continue to do the same. In 2010, a return of global growth, improved growth prospects, low interest rates, a weakening dollar, and quantitative easing by the U.S. Fed provided price support. In 2011, we see significant asymmetric upside price risks for most metals. At the same time, however, concern about decelerating Chinese growth, as well as international sovereign, municipal, and other government debt remains high. A mispricing of sovereign debt risk could have a catastrophic impact on the global economy, global growth, and industrial metals prices. For gold and silver, however, sovereign debt concerns lurking in the background continue to pose a very bullish price risk.

Nickel Rises to Eight-Month High on Strengthening China Demand

By Maria Kolesnikova - January 18, 2011 -- Nickel rose to an eight-month high in London as a report showed stronger demand for the metal in China. Copper climbed as Rio Tinto Group said production fell.

Nickel usage in China gained 20 percent from a year earlier to 45,000 metric tons in November, the International Nickel Study Group said in a report yesterday. Demand increased 3.4 percent from October, it said. Global usage of nickel, used to protect stainless steel against corrosion, climbed 12 percent from the prior year, it said.
“Chinese demand was strong, and this accords with anecdotes in the new year that stainless-steel producers are busily restocking and filling 2011 hedging mandates,” said David Thurtell, an analyst at Citigroup Inc. in London.

Nickel for delivery in three months climbed $580, or 2.2 percent, to $26,415 a ton at 12:30 p.m. on the London Metal Exchange. Prices reached $26,550, the highest intraday level since April 27. Nickel is up 6.7 percent this year, leading advances among the six main metals traded on the exchange.

Demand for nickel will rise as much as 7 percent in the first quarter from the prior three months to a record 390,000 tons on steelmaker usage, VTB Capital analyst Wiktor Bielski said in a report today. Supply will run short of demand by between 15,000 and 20,000 tons in the period, and prices may reach $27,500 a ton in the next few weeks, he said.

Looking Back and Ahead

Nickel Rises to Eight-Month High on Strengthening China Demand

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