Although primary nickel prices have underperformed as compared to other major base metals this year, improving stainless steel output, electric vehicle sales, and commodity investor sentiment are contributing to firmer prices across the nickel-stainless supply chain. After having bounced around US$ 16 000 per tonne late in the first quarter, nickel prices at the London Metal Exchange but were back up around US$ 18 000 per tonne in early May as nickel stocks in LME warehouses were being drawn down.
For stainless steel scrap processors and exporters, transportation bottlenecks are still at a critical level given the on-going challenges securing shipping containers and vessel space but the current recovery in prices and output bodes well for scrap demand going forward.
US employment data falls short of expectations, aluminium ingot continues destocking trend this week
