Page 84 from: April 2008

Closed: April 1 2008

By Alfred Nijkerk et al

Nickel & Stainless

Nickel climbs above
US$ 30 000 once again

M A R K E T A N A L Y S I S

Having dropped below US$ 29 000
per tonne on March 20, the LME
nickel price suddenly recovered to
break through the magic US$ 30 000
barrier, reaching US$ 31 150 in the
final days of March. This unexpected
increase was attributed to healthier
demand and to the continuing strike
at BHP Billiton’s Cerro Matoso
mines in Colombia. The dispute be-

gan in late February and has in-
duced the company to declare force
majeure on its nickel deliveries.

Nickel remained in a healthy con-
tango for the whole of March. Stocks
remain high: they have posted a record
of 49 000 tonnes and, experts believe,
could soon exceed 50 000 tonnes.

New stainless steel prices have
also recovered materially: for exam-

ple, the Northern European export
price for 2 mm 304 cold rolled sheet
has jumped above US$ 4000 per
tonne fob. Remarkably, 304 scrap
prices increased more than US$ 200
per tonne in March to reach US$
2850 in the final days of the month.
And 17% chrome scrap has gained
33% in value since February 25 to
attain US$ 600 per tonne. UK do-
mestic scrap prices climbed to nearly
£1350 per tonne (US$ 2700) for 304
solids, but 13% chrome scrap was
quoted at no more than £210 per
tonne (US$ 420) by UK traders – a
price much lower than that prevail-
ing on Continental Europe.

Special alloys

Ferro-molybdenum (containing
65-70% Mo) is trading at just over
US$ 80 per kg. Ferro-vanadium
(with 70-80% V) fell sharply in
March although the price is expected
to storm back in the second quarter.
Its all-time high of US$ 128 per kg
was reached in April 2005 before the
price slid gradually lower, remain-
ing for a period at US$ 93 per kg in
February owing to power shortages
in China before dropping to US$ 77
per kg.

Ferro-tungsten (with 75 % W)
achieved a peak of US$ 40 per kg
while ferro-titanium (containing 70%

Ti) is now in the price range US$ 8.30-
8.70 per kg. Ferro-chromium has bro-
ken through the magical US$ 10 per
kg barrier due mainly to Chinese de-
mand and a significant reduction in
South African production resulting
from continuing electricity shortages.

Cobalt prices have remained at
US$ 49 per lb for low-grade material
and US$ 50-52.50 for high grade.

Europe

The nickel market showed little
dynamism in March and prices
broadly followed the LME. However,
there were no fundamental changes
to the supply situation in Europe.

In Germany, nickel cathode prices
increased from US$ 27 570 to US$
29 950 per tonne while alloyed scrap
prices also improved, with V2A (304)
scrap recently trading at well over
US$ 2800 per tonne and V4A (316)
scrap at more than US$ 4000.

China and elsewhere in Asia

On the Shanghai Yangtze spot
market, nickel prices gained Yuan
1250 per tonne (US$ 176) to reach
Yuan 245 750 (US$ 34 612.80) on
March 26.

China’s imports of nickel and alloys
increased 7.9% to 13 042 tonnes in

Recycling International • April 2008 84

In common with other non-ferrous metals, LME nickel prices

fell markedly in mid-March, with the three-month price drop-

ping from US$ 32 000 per tonne in the early part of the

month to US$ 29 000 on March 20 before mounting yet

another recovery. Ferro-chrome and charge chrome are still

scarce owing to power shortages in South Africa; the former

has now attained a price of US$ 10 per kg. Rotterdam

prices for 304 stainless steel scrap have risen to US$ 2850

per tonne, while 316 scrap has advanced to US$ 4200.

Ferritic 430 scrap (17% chromium) has made considerable

gains to US$ 600 per tonne while, in late March, 409 scrap

(13% chromium) was yielding US$ 520.

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