Nickel Market Hits 22 Months Low

International nickel market price dropped to the lowest level in 22 months when London Metal Exchange’s market decreased to less than US$ 25,000 per tonne, which was expected to be lower resistant level, due to slower demand in China. The speculative money withdrew from LME nickel, lead and zinc while such money supports copper, aluminium and tin. LME nickel settlement price dropped to US$ 24,455 per tonne on Thursday, which was US$ 845 lower than previous day. The price decreased by 26% from recent peak in March. The price keeps decreasing when the inventory is 48,870 tonnes, which is 10 times of level in a year earlier, while traders liquidate the overstock after they built inventory with expectation for higher demand in China. The LME price dropped to less than US$ 24,000 in the afternoon session on Thursday when the speculators tried to limit the loss for less than US$ 25,000 market. The price could decrease to around US$ 20,000.International Nickel Study Group expects the supply is 76,000 tonnes more than the demand in 2008 due to slower stainless demand. The supply increases toward 2009 with major projects launching including Ravensthorpe of Australia and Goro of New Caledonia.