SPONSOR: Tartisan Nickel (TN:CSE)  Kenbridge Property has a measured and indicated resource of 7.14 million tonnes at 0.62% nickel, 0.33% copper. Tartisan also has interests in Peru, including a 20 percent equity stake in Eloro Resources and 2 percent NSR in their La Victoria property. Click her for more information

Nickel climbs as stainless steel producers prepare for Indonesia ban

• Nickel prices climbed on Friday as stainless steel producers bought supplies ahead of a Chinese holiday and an Indonesian nickel ore export ban that could create shortages.
• Top supplier Indonesia’s plan to ban exports of nickel ore has been brought forward by two years to Jan. 1, 2020, and the Philippines, the world’s second-biggest ore producer, could suspend five mining companies at the end of this year.

By: Eric Onstad

LONDON — Nickel prices climbed on Friday as stainless steel producers bought supplies ahead of a Chinese holiday and an Indonesian nickel ore export ban that could create shortages.

Top supplier Indonesia’s plan to ban exports of nickel ore has been brought forward by two years to Jan. 1, 2020, and the Philippines, the world’s second-biggest ore producer, could suspend five mining companies at the end of this year.

“There have been some anecdotes of stainless mills restocking nickel and that has been positive,” said analyst Nicholas Snowdon at Deutsche Bank in London.

Nickel is mostly used as an alloy in the production of stainless steel.

“Across most sectors, in the week before the Golden Week holiday, you’ll invariably see a bit of raw material restocking, so we have elements of that in nickel alongside the broader potential restocking as we head into the (Indonesia) ban application.”

China celebrates its National Day Golden Week holiday in early October.

Benchmark nickel on the London Metal Exchange gained 2.6% to $17,725 a tonne in official open-outcry trading, on track for its biggest one-day gain in three weeks.

* CHINA RATE CUT: Base metals also gained support from China cutting its one-year benchmark lending rate for the second month in a row on Friday.

* NICKEL INVENTORIES: Nickel stocks in warehouses monitored by the Shanghai Futures Exchange slid 13.6%, weekly data showed on Friday.

* NICKEL SPREAD: The premium of LME cash nickel over the three-month contract climbed to $150 a tonne, near the recent decade high of $163, indicating near-term tightness.

* MARKET DEFICIT: The global nickel market deficit widened to 6,700 tonnes in July from a revised 2,700 tonnes in the previous month, the International Nickel Study Group (INSG) said on Thursday.

* ALUMINIUM OUTPUT: LME aluminum, untraded in official rings, was bid down 0.6% at $1,790 a tonne after data showed that global primary aluminum output rose to 5.407 million tonnes in August from a revised 5.404 million tonnes in July.

* COPPER DEMAND: Fitch Solutions cut its average price forecast for copper to $5,900 a tonne this year and $5,700 in 2020, from previous views of $6,300 a tonne and $6,600 a tonne respectively.

“A drop in Chinese demand has loosened the global (copper) market, while sentiment continues to worsen,” Fitch said in a note.

LME copper was bid up 0.3% at $5,804 a tonne but remained on course for a 2.6% drop over the week, which would mark its steepest weekly fall since the week ended Aug. 2.

* PRICES: LME three-month zinc was bid down 0.2% in official activity at $2,308 a tonne, lead gained 0.9% to trade at $2,114 and tin slipped 0.3% to trade at $16,400.

* For the top stories in metals and other news, click or (Additional reporting by Tom Daly in Beijing; editing by David Goodman and Jason Neely)

Source: https://business.financialpost.com/pmn/business-pmn/nickel-climbs-as-stainless-steel-producers-prepare-for-indonesia-ban

SPONSOR: Tartisan Nickel (TN:CSE)  Kenbridge Property has a measured and indicated resource of 7.14 million tonnes at 0.62% nickel, 0.33% copper. Tartisan also has interests in Peru, including a 20 percent equity stake in Eloro Resources and 2 percent NSR in their La Victoria property. Click her for more information

Nickel gains as waste spill highlights supply worries

• Nickel prices rose on Thursday after a waste spill threatened to close a processing plant in Papua New Guinea, adding to fears of supply shortages.
• Benchmark nickel on the London Metal Exchange (LME) ended up 2.3% at $16,455, near a 16-month high of $16,690 reached three weeks ago.

LONDON — Nickel prices rose on Thursday after a waste spill threatened to close a processing plant in Papua New Guinea, adding to fears of supply shortages.

Benchmark nickel on the London Metal Exchange (LME) ended up 2.3% at $16,455, near a 16-month high of $16,690 reached three weeks ago.

The stainless steel ingredient has leaped 50% this year, rising rapidly since July amid worries that top ore producer Indonesia could ban exports earlier than expected, potentially disrupting the market.

The premium for cash nickel over the three-month contract on the LME has spiked to a 10-year high of $95 a tonne, signaling tight nearby supply. One party holds 50% to 80% of available LME inventories.

Now, a battery nickel processing plant owned by Metallurgical Corp of China faces possible closure after it spilled mine waste into Papua New Guinea’s Basamuk Bay.

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“That brings to the forefront the ongoing supply concerns from some of these (producer) countries,” BMO analyst Colin Hamilton said.

But he said the big premium for cash nickel on the LME likely showed prices had risen too fast, rather than real shortages of material. Strong output of nickel pig iron from China meant nickel should cost closer to $13,500, he added.

CHINA: Factory activity in China is expected to have contracted for the fourth straight month in August, dampening demand. China is the world’s largest metals consumer.

TRADE WAR: Hopes for progress in a U.S.-China trade dispute that has dented global economic growth hinge on whether Washington can create favorable conditions, China’s commerce ministry said on Thursday.

U.S. GROWTH: The U.S. economy slowed in the second quarter, but the strongest growth in consumer spending in 4-1/2 years and a strong labor market could temper expectations of a recession.

YUAN: China’s yuan touched a new 11-1/2-year low, raising the cost of dollar-priced metals for Chinese buyers and potentially weakening demand.

NICKEL STOCKS: Headline inventories in LME-registered warehouses slumped to a 6-1/2-year low of 141,906 tonnes this month before rising slightly to 150,708 tonnes.

POSITIONING: Speculative investors held a net long position in LME nickel equal to 19% of open contracts as of Tuesday, brokerage Marex Spectron said.

The expansion of bets on higher prices leaves nickel vulnerable to a correction if speculators change their minds, analysts at Commerzbank said.

COPPER: Fresh cancellations of 24,425 tonnes took on-warrant copper stocks available to the market in LME warehouses to 241,150 tonnes, down from more than 300,000 tonnes earlier this month.

Benchmark copper finished up 0.6% at $5,726 a tonne.

OTHER METALS: LME aluminum closed 0.4% higher at $1,753, zinc rose 0.5% to $2,269, lead slipped 0.3% to $2,060 and tin gained 0.3% to $15,795.

(Reporting by Peter Hobson; additional reporting by Mai Nguyen; Editing by Dale Hudson and Kirsten Donovan)

Source: https://business.financialpost.com/pmn/business-pmn/nickel-gains-as-waste-spill-highlights-supply-worries