Daily Nickel/Stainless Steel Briefing 

• Nickel closed Wednesday's trading session at $14.81/lb ($32,645/tonne). Indicators at 6:00 am CST today show nickel trading around $.20/lb higher. Stockpiles of nickel stored in LME licensed warehouses  rose by 5 lots on Wednesday and started today just under the 72,600 tonne level. Nickel is up this morning, while most of the other base metals are lower on a weaker Euro. Interesting article below titled 'From VW to JP Morgan, the Unlikely Cast Behind the Nickel's Big Squeeze'. Bloomberg reported yesterday that Tesla  had a signed a secret deal with Vale to provide nickel. Not really sure why the deal was secret, unless Vale's mining process isn't as clean as Musk has boasted his nickel would be. That is entirely speculation on our part, and in our opinion, it makes logistical sense for US manufacturers to deal with Canadian suppliers, when US suppliers are lacking.  On Tuesday, the U.S. government approved a second booster for those over 50 years of age. Right now, in our area, one is being bribed with a $50 gift card for getting their first or second shot, or first booster. No such offer is being made for a second booster, so why should we not wait until the government is willing to pay us? Being a pin cushion could potentially be less painful, if we had some free beer to chug down afterwards? Of course, we kid and will get the second booster when we feel we need some extra protection, as in if another wave hits. It is exasperating, however, to 'play by the rules', only to see those unable to perform their civic duty, receive compensation for past resistance. It's a 'Will Smith at the Oscars' moment, if you know what we mean. Missouri released some interesting statistics yesterday, and disguised in the numbers, is the apparent fact that at least 1 in 6 Missourians who have died from covid in the past year, are fully vaccinated. These are rather stunning numbers, and no one appears to be talking about it. Stay safe out there and have a great Thursday!  
  
• Average price of LME traded cash nickel so far this month - $15.49/lb
  

    Wednesday's market review - Aluminium rises on revived Russian supply fears, weaker dollar - Prices of aluminum and other industrial metals rose on Wednesday as Ukraine and its Western allies warned that a Russian military pullback was a ploy to refit troops and the dollar weakened, making metals cheaper for non-U.S. buyers. - more

     Trust warning over LME nickel suspension - The huge jump in nickel prices in early March and the response of the London Metal Exchange was ‘a harrowing experience’ which widened the trust deficit between the exchange and physical markets, according to leading member of the non-ferrous scrap community. - more

• From VW to JPMorgan, the Unlikely Cast Behind Nickel’s Big Squeeze - more
  

     Tesla signed secret nickel supply deal with Vale - Bloomberg News - Tesla Inc has signed an undisclosed deal with Brazilian mining company Vale S.A. for the supply of nickel to the electric car maker, Bloomberg News reported on Wednesday, citing sources. - more

• Voisey's Bay nickel could end up in electric vehicles from companies like BMW and Tesla under new deals - more
  

   Other News

• Reuters The Day Ahead - pdf here
• Biden could sign defense production authority for battery minerals -source - more
• ArcelorMittal halts three plants in Spain amid supply disruptions - more
  

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Tuesday's trading session at $14.44/lb ($31,840/tonne). Indicators at 6:00 am CST today show nickel trading around $.35/lb higher. Stockpiles of nickel stored in LME licensed warehouses fell on Tuesday and started today just over the 72,500 tonne level. As of today, nickel is down just over 7500 tonnes this month.  They were down 10,500 tonnes in February, and down nearly 11,300 tonnes in January. The LME parroted their owners yesterday and said they would do an independent review and make whatever adjustments that were necessary. How does one do an independent review on themselves? Maybe it's a language thing and they meant "they will have an independent review done by an outside agency". Or it just meant "p--s off!". Euro is way up this morning on Ukraine hopes, which typically helps commodity prices. Stay safe out there and have a great hump day!
  
• Average price of LME traded cash nickel so far this month - $15.53/lb
  
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    Tuesday's market review - Aluminium falls as Russia pledges to cut military activity in Ukraine - Aluminum led industrial metals lower on Tuesday after Russia promised to scale down its military operations around Kyiv and in northern Ukraine, easing supply concerns that have underpinned prices. - more

• Overnight SHFE Nickel Dropped on Expectations of Shrinking Demand - more
  

• London Metal Exchange CEO: Nickel surge threatened market stability, forced bourse’s hand - more

• Taiwan’s Walsin Lihwa has spike in stainless steel wire rod prices for Apr - more
  

     Mnangagwa calls for exports diversity - President Emmerson Mnangagwa yesterday called on industrialists to enhance value addition and diversify their exports to end the exportation of raw commodities. - more

     Courtesy AISI - In the week ending on March 26, 2022, domestic raw steel production was 1,726,000 net tons while the capability utilization rate was 79.4 percent. Production was 1,768,000 net tons in the week ending March 26, 2021 while the capability utilization then was 78.0 percent. - more

     Ukraine War, China Lockdowns Hit Global Supply Chains - Global supply strains that started to ease in early 2022 are worsening again as headwinds strengthen from the war in Ukraine and China’s Covid lockdowns, threatening slower growth and faster inflation across the global economy. - more

   Other News

• Reuters The Day Ahead - pdf here
• China lockdowns cost at least $46 billion a month, academic says - more
  

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Monday's trading session at $15.01/lb ($33,100/tonne). Indicators at 6:05 am CST today show nickel trading around $.31/lb  lower. Stockpiles of nickel stored in LME licensed warehouses fell on Monday and ended that session just over the 72,600 tonne level.  Nickel is only down $.31/lb this morning, if you can believe it. While Shanghai markets remain volatile, down another 6+% this morning, LME traders appear to be tuckering out. The Shanghai Metals Market commentary noted this morning, that traders there would be looking to the LME for directional guidance in the coming days. Really? Speaking of admissions, we probably got the closest thing to an apology we will see from the LME. LME's owners, HKEX, told reporters that they were sure the LME board had learned valuable lessons from this ordeal and would make necessary adjustments. In other words - p--s off! An article below about Asperam's surcharges. If you haven't checked US surcharges we posted last week, you are in for another shock (see here). Stay safe out there and have a great day!
  
• Average price of LME traded cash nickel so far this month - $15.57/lb
  

    Monday's market review - Copper rebounds despite Shanghai lockdown - Copper bounced on Monday despite worries that spreading COVID-19 infections in top metals consumer China could hit demand while nickel slumped in thin trade amid uncertainty about short positions in the market. - more

     Philequity Corner - Big Short by Big Shot - We have been writing about the Russian invasion and its impact on stocks, bonds, currencies and commodities. - pdf here

• Nickel and Stainless steel – Tsingshan - more
  
• How Putin invasion left ‘Nickel King’ on hook for billions - more
  
• LME board will learn lessons from nickel chaos, says parent company HKEX - more
  

• SHFE Nickel Has Dropped 22% from Record High, Spot Transactions and Logistics Stagnate - more
  

     Metals and mined commodity price spikes could signal long-lasting changes - The combination of factors including the Russia-Ukraine conflict, stimulated economies, thriving post-pandemic demand, and ongoing Covid constraints on logistics have put supply chains under immense stress, triggering multiple price records for metals and mined commodities. - more

     Vietnam's nickel demand expected to increase - Vietnam has the opportunity to be at the forefront of the global movement towards the electrification of transport, so demand for nickel in Vietnam will continue to rise, experts have said. - more

     Chinese steel prices buck the global trend - European steel transaction values are soaring, during the military conflict in Ukraine. The recent downward trend in the US steel market has been reversed. - more

• Stainless Steel Spots and Futures Prices Fell Nearly Below 20,000 yuan/mt - more
  

     Sumitomo Metal sees global nickel demand for battery use at 410,000 in 2022 - Global demand for nickel used in batteries is expected to rise more than 20% this year on solid demand for electric vehicles (EVs), Japan’s biggest smelter of the metal Sumitomo Metal Mining said on Tuesday. - more

   Other News

• Reuters The Day Ahead - pdf here
• Asian economies remain well positioned for growth despite rising energy, commodity prices: Standard Chartered chair - more
• New Zealand giving 'green light' to sea bed mining in ungoverned Pacific waters - more
  

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Friday's trading session at $15.96/lb ($35,175/tonne). Indicators at 6:10 am CST today show nickel trading around $.87/lb lower. Stockpiles of nickel stored in LME licensed warehouses fell slightly on Friday and ended the week just over the 72,800 tonne level. LME nickel fell sharply this morning but has recovered some of the earlier loss. Shanghai fell to its limit overnight. Not sure if fundamentals actually mean anything to traders anymore, but the covid closures in China, should be concerning to all interested in a smooth supply chain. The LME's chairman took issue with the Wall Street Journal article we linked to and responded in an editorial. We would like to quote a small segment of his reply. "The situation in nickel is unprecedented, and trading was suspended to preserve the integrity of the market and prevent disorder. Cancellations were made retrospectively to take the market back to the last point in time at which it was operating in an orderly manner. Had the LME not taken these decisions, the effect on the nickel market would have been intensely damaging and felt throughout the nickel value chain and investment community." Our question to the LME would be "who decided the market was operating at an orderly manner at your organization during a market free fall from a ridiculous peak, but became disorderly when it came near the $48,000/tonne level and was halted and lower trades were cancelled?" Who defines market integrity to include your organization using its bully pulpit to manipulate trades that have already taken place? Do you really feel that the 'nickel value chain' was NOT harmed by you freezing prices at or near record levels on multiple occasions? While we agree that there will be numerous conspiracy theories sure to float over this situation, we feel your replies to the accusatory pens, sure to come, would best be served if you would show a little more contrition. In our parts, one might say "y'all screwed the pooch on this har' sitch-e-ation", so pretending you didn't, just makes those who are paying the price for these decisions, a tad more aggravated. For your records - LME nickel traded at $101,365/tonne on March 8th, before crumbling, a new all time record high. It's Monday and most of it will make up the last of March. Stay safe out there and have a great week!
  
• Average price of LME traded cash nickel so far this month - $15.58/lb
  

    Friday's market review - Copper, aluminium slip on profit-taking in thin trade - Copper and aluminum eased in thin trade on Friday as some investors booked profits, though the potential for further Russian sanctions to fuel supply uncertainty lent support. - more

• Shanghai nickel jumps to record with China import window closing [Friday] - more
  

• London Metal Exchange Denies Chinese Interference in Nickel Market - more
• London Metal Exchange Sees Trader Exodus as Open Interest Slides - more
• LME to Nearly Double Its Default Fund After Nickel Squeeze - more
• The play by Xiang Guangda, China’s “Nickel King”, was to use his influential market .... - more

• SunSirs: The Price of Stainless Steel Was Up Slightly This Week (March 21-25) - more
  

     COLUMN-LME nickel limps back but tensions are not going away: Andy Home - London Metal Exchange (LME) three-month nickel is currently trading at $35,150 per tonne. - more

     War Dims Global Business Outlook as Inflation Plight Worsens - Factories from Australia to Europe are seeing already surging costs jump further as Russia’s war in Ukraine and the barrage of sanctions rolled out in response roil commodity markets and trade. - more

• Ukraine war cuts global growth prospects by 1% – UNCTAD - more
• The war has the world in production crisis - more

   Other News

• Reuters The Day Ahead - pdf here
• Diesel-Tax Holidays Are Meant to Help Truckers - But They're Not Celebrating - more
• New Federal Law Bans Mandatory Arbitration For Sexual Misconduct Claims - more
  

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Thursday's trading session at $16.89/lb ($37,235/tonne). Indicators at 6:20 am CST today show nickel trading around $1.01/lb lower. Stockpiles of nickel stored in LME licensed warehouses fell slightly on Thursday and ended that day just under the 73,000 tonne level. After nickel was halted on the LME yesterday for a second consecutive session, Shanghai nickel was also halted overnight - for a second consecutive session. This morning, trading is volatile, but still trading. After a 8+% jump north early on, nickel is now trading nearly 6% lower. Remember back when buyers would get nervous if nickel moved $.10/lb a day, and starting reexamining their career choice at $.25 per day. Now instead of pocket change, we are using bills to describe daily moves. Our daily visits are way up with the volatility and we suspect many are trying to find out what is going on. If that is you, we thank you for your visit and say this. Forget all about the Russian invasion of Ukraine. That helped keep the market bullish but has had little affect on supply.... so far. In fact, you can forget all that you have heard about how we are slowly running out of nickel. We are slowly running out of processed nickel, which stainless steel users and electric vehicle battery producers need, but we are not at a critical stage yet, and do not foresee that anytime soon.  Besides, that was priced into the market way back. No you can forget all the 'sky is falling' scenarios you might have heard too explain the complete mayhem in the market these days and notch it all up to people with a lot more money than you and us, playing chicken with their money.... and some of your retirement money. We doubt that makes you feel better, as it doesn't us, but that is the axis upon which the markets turn, and in this case, when the money being gambled got to a point where the house got nervous, they stepped in and froze the game and cancelled former bets,  much to the chagrin of all concerned. Now everyone is unhappy with the house, and threaten to take their game elsewhere, but in the mean time, the game continues. At least until the house turns the lights off - which seems to come within minutes of the establishment opening recently. That is as about as simple as we can describe a very complex game. Stay safe out there and have a peaceful and relaxing, or wild and exciting weekend.
  
• Average price of LME traded cash nickel so far this month - $15.54/lb
  

    Thursday's market review - LME benchmark nickel jumps 15%, hits price limit in thin market - Nickel prices lurched higher to hit their daily limits in London and China on Thursday with the large moves fuelled by thin trading conditions. - more

     Mining firm backed by Bezos and Gates to begin Greenland drilling - Mineral exploration company KoBold Metals, backed by billionaires including Jeff Bezos and Bill Gates, said on Thursday it would begin drilling in Greenland for critical materials used in electric vehicles. - more

   Other News

• Reuters The Day Ahead - pdf here
• 190 Containers Lost and Damaged in Collapse on Maersk Chartered Ship - more
  

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Wednesday's trading session at $14.69/lb ($32,380/tonne). Indicators at 6:00 am CST today show nickel traded to a 15% up stop and has halted for the day with a gain of $2.20/lb. Stockpiles of nickel stored in LME licensed warehouses fell slightly and ended the day just over the 73,000 tonne level. Overnight, Shanghai markets played follow the leader and hit their stop level at a 17% gain, and with many using Shanghai markets as a guide to find so called "parity" over the past week, LME markets once again hit a LME up stop this morning - after taking a few hours to do it yesterday. So, it becomes a case of the blind leading the blind. Shanghai markets fell slightly the prior day, following LME's lead from the prior session. LME's sudden jump yesterday was on their own - with no leadership from the Shanghai market. LME jumped first, then Shanghai, and now LME again. Right after we published yesterday, LME halted nickel trading after it hit the 15% threshold. This is turning into the worse roller coaster ride ever. Only thing worse than nose bleed dives and and stomach churning rises, is the roller coaster breaking down in the middle of both. Not a ride that sane people would climb on, unless they have some masochistic tendencies. We erred in reporting February steel output was up nearly 6% worldwide yesterday. The report clearly stated it was down nearly 6% and it is doubtful with a war raging and COVID rearing its head in China, that March will fare any better. For those waiting for stainless steel prices to fall, you will need to continue to wait. China traded stainless steel jumped overnight, following nickel's lead. Once again, we are put into a wait and see attitude as the big players play chess with nickel  and the rest of the world is sidelined. Stay safe and have a great day!
  
• Average price of LME traded cash nickel so far this month - $15.42/lb
  

    Wednesday's market review - Nickel jumps, zinc climbs on worries over supplies, energy - Nickel prices jumped 15% to their upper limit and zinc and other industrial metals also climbed on Wednesday as disruptions from the Russia-Ukraine conflict and higher energy prices stoked concern of shortages. - more

• Nickel Short Saga Raises Questions About China’s Interference in International Markets - more
  

    China stainless steel futures hit over 2-week high as nickel jumps - Chinese stainless steel futures soared as much as 10% on Thursday to their highest since March 9, after raw material nickel’s prices hit upper limits on both the London Metal Exchange (LME) and the Shanghai bourse. - more

• Stainless Steel Cost Inflated amid Still Rising LME Nickel - more
•  SS Contract up over 6%, Stainless Steel Spot Surged Nearly 1000 yuan/mt  - more
  

     Fitch Ratings cut world growth forecasts as inflation intensifies due to war - The outlook for global GDP growth has deteriorated significantly as inflation challenges intensify and Russia’s invasion of Ukraine threatens global energy supplies. - more

     Letter: Save our city - a simple alternative - Vale’s grant-in-lieu should reflect the total number of employees at its operations in Thompson, including unionized hourly employees and external contractors. - more

   Other News

• Reuters The Day Ahead - pdf here
• Russian Oil Seeps Into Global Market, Easing Supply Fears for Now - more
• How My Great-Uncle Swindled Hitler Out of Precious Canadian Nickel Before WWII - more
  

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Tuesday's trading session at $12.89/lb ($28,410/tonne). Indicators at 6:00 am CST today show nickel trading around $1.71/lb higher. Stockpiles of nickel stored in LME licensed warehouses fell on Tuesday and finished that session just over the 73,200 tonne level. The nickel bulls are back this morning, with a sharp rise early on, a fade, followed by a jump that runs the risk of triggering a 15% limit up halt. Can you spell 'volatility'? Market bulls are trying to establish a floor after the recent LME debacle, while the bears like the slide. Wall Street Journal has an article posted this morning that looks interesting, subtitled 'Did the London Metal Exchange cancel trades to help a Chinese firm?', but its behind a subscriber wall, so hopefully they will open it up later today and we can link to it tomorrow. China's steel hub Tangshan is under another COVID lockdown. Worldsteel reports global steel production was down over 5-1/2% in February compared to last year. Stay safe out there and enjoy your hump day!
  
• Average price of LME traded cash nickel so far this month - $15.49/lb
  

    Tuesday's market review - Aluminium edges lower as nickel shows signs of normalising - Aluminum dipped on Tuesday, with traders balancing the risk of supply shortages against the prospect of economic weakness denting demand, while nickel began trading in volume on the London Metal Exchange (LME) for the first time in two weeks. - more

• The LME made a hash of it — but nickel traders were warned - more
• Nickel market will be broken even if LME’s fixed - more

   Other News

• Reuters The Day Ahead - pdf here
• Russia’s war against Ukraine reshapes the geopolitical and economic outlook - more
• The Ongoing Fallout From Russia’s Invasion of Ukraine - more
• Fixing Broken Supply Chains Requires a Paradigm Shift - more
• Nickel Entrepreneurs Concerned About Revocation Of Business Permits, Commission VII Of DPR Calls Political Problems - more
  

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Monday's trading session at $14.23/lb ($31,380/tonne). Indicators at 6:00 am CST today show nickel trading around $1.40/lb lower. Stockpiles of nickel stored in LME licensed warehouses fell slightly on Monday and ended that day just under the 23,600 tonne level. Hey, we are witnessing nickel trading. And as of this moment, knock on wood, we have not hit the lower stop limit of 15%. We actually saw some buyers jump in earlier, but they appear to be in trouble, as the bears remain firmly in control. Now that the market has returned to a sense of normalcy, we look forward to the conspiracy theories blooming. There is a question that we have. If the short squeeze is only successful against those who can not cover their bets, is Tsingshan not producing as much nickel as they claim? Or are we confused on all the aspects of the short squeeze? Nickel trading is back. Stay safe and have a great day!
  
• Average price of LME traded cash nickel so far this month - $16.67/lb
  

    Monday's market review - Aluminium jumps on Russian supply worries, nickel goes limit down again - Aluminium prices jumped more than 5% today after Australia banned the export of materials used to make the metal to Russia as part of its sanctions against Moscow for its invasion of Ukraine. - more

• LME declares some nickel trades ‘null and void’ as chaos plagues market for third week - more
  

   Other News

• Reuters The Day Ahead - pdf here

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Friday's trading session at $16.74/lb ($36,915/tonne). Indicators at 6:00 am CST today show nickel not trading after hitting a 15% daily stop, and nickel ended trading before it began at $14.23/lb. Stockpiles of nickel stored in LME licensed warehouses fell on Friday and ended last week just over the 73,600 tonne level. Today is the fourth trading day for nickel since LME resumed nickel trading on the 16th. And today, after the market hit its daily down limit of 5, then 8, then 12% within minutes of opening, the London Metal Exchange raised today's up/down limit to 15%. So was today any different than the last three? Nada. Nickel hits its new daily down limit within minutes of opening. In a Bloomberg article below titled "Goldman Bids For Nickel Off-Exchange About 32% Below LME Price" the following statement is made. "The bank [Goldman Sachs Group] has been offering to trade contracts in commodity index products, such as the S&P GSCI, whose constituents include nickel, the people said, implying a bid and offer for the nickel price. The bank’s proposals imply a bid for nickel at about $25,000 a ton, and an offer about $37,000 a ton, the people said, asking not to be named as the matter isn’t public." Where did we hear that $25,000 level before? So for yet another session, we are left with little to talk about as LME refuses to allow the market to correct on its own. No one is happy as can be seen in the articles we have posted below. We have said repeatedly over the years that the big players can't make money when the market isn't moving, and the biggest gains, and potential losses, come with volatility. And right now, the big players are have their hands tied. Also, before we are asked, we have replaced the current Russian flag with the old USSR flag. When the country wants to join the 21st century, and stop invading their neighbors, we will return to using their new flag. Stay safe out there and have a great week! 
• Average price of LME traded cash nickel so far this month - $15.83/lb
  

    Friday's market review - LME nickel extends its slide as bugs still hit trading - The London Metal Exchange (LME) again widened its trading band for nickel on Friday, but for a third session in a row it hit limit down, sliding 12% as the LME faced more technical problems. - more

• 5-Count Felon JPMorgan Is at the Center of a New, Multi-Billion Dollar Trading Scandal - more
• Inside the Nickel Market Failure: Massive Trades the Exchange Didn’t See - more
• Traders in uproar over the LME - more
  
• LME nickel rout: banks are partly to blame for nickel short squeeze, metal exchange boss says - more
• Goldman Bids for Nickel Off-Exchange About 32% Below LME Price - more
• Nickel Squeeze Threatens London’s Place at Heart of Metals Trade - more

   How a global nickel shortage could disrupt the electric vehicle industry - As automakers around the world set bold targets for vehicle electrification, many in the industry are looking to nickel — an integral component of most lithium ion batteries — as a major hurdle. - more

• Volkswagen unveils Asian ventures to secure e-battery materials supply - more
  

   Other News

• Reuters The Day Ahead - pdf here
• Chinese Aircraft Carrier Sails Through Taiwan Strait Hours Before Biden-Xi Call - more
• The war in Ukraine may have supply chain implications beyond energy - more
• China tries to stop questions about Ukraine stance by asking G20 not to discuss war - more
  

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Thursday's trading session at $19.03/lb ($41,945/tonne). Indicators at 6:40 am CST today show nickel trading stopped for a third day and it will end $2.28/lb lower, or at $36,915/tonne. Stockpiles of nickel stored in LME licensed warehouses rose slightly on Thursday and ended that trading day just under the 74,400 tonne level. A 5% limit didn't work out so well on Wednesday, so LME raised it to 8% on Thursday, equally successful. With traders having spent nearly as much time in the last few days trading nickel than they had the prior week (when it was shut down completely), LME is tried yet again on Friday, by rising the daily limit to 12% - putting the Friday's stop trading level at $36,915/tonne. Price parity with Shanghai traded nickel was around $34,300/tonne on Thursday, but SMM nickel fell over 1% overnight. Regular readers to this site know that we put little merit in Shanghai traded nickel as little more than a mirror of LME's prior trading day. The sudden silence from London appears to have left Shanghai rudderless. In our opinion, traders looking to Shanghai prices for guidance, are chasing their own tail. So how did today go? Stopped yet again, as nickel hits it bearish limit. One might think the stainless steel industry would be excited by this bearish run. And less expensive nickel is better for stainless steel users, no doubt. But the fact nickel tested an absurd level and was in a free fall when LME decided to step in, left nickel prices in near record territory for over a week, and the attempts to continue that free fall, have been nixed with these stop levels. The nickel producers might appreciate these constant attempts to calm the market, but the market prices are coming down lower than they rose, and the market is no longer being allowed to find its own footing. This whole affair is a black eye to the London Metal Exchange, and it continued to bleed confidence this week. Considering the LME will have to cancel more trades that made it below the stop level, we suspect Monday will continue to be bearish, although at some point the rout will have to end.  The month began around the $25,000/tonne range and we suspect that might be a good base target for traders to consider. With China slowly shutting down trying to keep COVID under control there, and Europe feeling the squeeze from sanctions against the invading Russia, stainless steel production is paying the price. The higher prices are affecting demand, as are the same two conditions in Europe and China. A good week to be done with, so we leave you with "stay safe out there and have a great weekend!".
  
• Average price of LME traded cash nickel so far this month - $15.68/lb
  

    Thursday's market review - Nickel slides as LME glitches fuel more market mayhem - The London Metal Exchange's (LME) benchmark nickel contract slumped to its daily limit for the second day in a row on Thursday and traders said it would probably continue to slide until it reached parity with the price of the metal in China. - more

• Problems entering nickel trades in the pre-open - LME - more
  

     From Nickel to Cobalt, Chinese Mining Interests in Africa Face Challenges - It is a metal found in products used by people worldwide, unthinkingly every day. Whether it’s scrolling on a mobile phone or commuting to work in an electric car, nickel is a key part of these high-tech devices. - more

   Tesla says it is trying to keep production going at Shanghai factory - Tesla said on Thursday it was doing its best to keep production going at its Shanghai factory while it cooperates with China's COVID-19 prevention measures. - more

     Navigating the Russia-Ukraine Crisis: What the Supply Chain Industry Needs to Know - Here are three major aspects of the situation that supply chain and logistics professionals need to keep in mind as they navigate this challenging period. - more

   Other News

• Reuters The Day Ahead - pdf here
• Ukraine invasion: China braces for effects of global fertiliser shortage on food security - more
  

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Wednesday's trading session at $20.68/lb ($45,590/tonne). Indicators at 6:00 am CST today show nickel hit its new limit of 8% down moments after opening. To explain yesterday, and now today, we turn to Reuters quoting a LME metals trader. "What a mess. It's embarrassing; disorderly doesn't even begin to describe it." Apparently the 'adjusted'  closing price for the last full day of trading, March 7th, was set by the London Metal Exchange at $47,986/tonne. When trading opened yesterday, traders were quickly trading below the $45,590/tonne daily limit, and the automatic stoppage did not kick in, LME stopped trading .... again. They have advised that trades at $45,590/tonne would stand, but all those trades below that level, would be cancelled. Today the limits on LME nickel trading were raised from 5% to 8%, since the 5% proved less than successful. Why 8%?  Apparently  traders believe LME nickel is about 8% higher than Shanghai traded nickel, and the LME needs the 8% cushion to calm activity down. That worked out equally well, and nickel hit the 8% limit moments after it opened today... thus another stoppage. Yesterday, Reuters posted an article titled "Caution reigns as nickel trading resumes in London". By the time, Google had picked up the article, which most of the time only takes minutes, Reuters had changed the title to "Nickel market in disarray after chaotic London return". The whole 8% theory is merely a wish. If you wonder why we say that, read the Bloomberg article below titled "Nickel Bulls Are Taunted by a Huge Sell Order as Trading Reopens". Markets in general work on a herd mentality, and its obvious the nickel herd is bearish, and these LME trading halts are merely getting in the way of a stampede. No one wants to be the guy holding the empty bag. Not much industry news besides the LME fiasco. US Fed raised rates by .25 points yesterday. Europe has slapped higher tariff's on stainless steel from India and Indonesia. And Indonesia begins production on its first electric car thru Hyundai. Stay safe out there and have a ...... sorry, we have exceeded our daily allotment of the internet and must halt our typing.
  
• Average price of LME traded cash nickel so far this month - $15.11/lb
  

    Wednesday's market review - Aluminium rebounds on China hopes; LME nickel slides limit down - LME nickel resumed trading on Wednesday and slid to its lower limit, while copper prices climbed on hopes of more stimulus in China. - more

     Nickel market in disarray after chaotic London return - The London Metal Exchange had hoped to get the global market for nickel motoring again on Wednesday after a week in limbo. It didn't work out as planned. - more

• Nickel Bulls Are Taunted by a Huge Sell Order as Trading Reopens - more

     Hyundai launches plant to produce Indonesia's first electric car - Hyundai Motor Group launched a new automotive plant on Wednesday that will produce Indonesia's first locally assembled electric vehicle, part of President Joko Widodo's goal of developing a full EV supply chain utilising the country's mineral resources. - more

   Other News

• Reuters The Day Ahead - pdf here
• Trucking Delays and Ship Queues Grow in China Amid New COVID Lockdowns - more
  

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Tuesday's trading session untraded. Indicators at 6:00 am CST today show nickel trading lower but halted again. Stockpiles of nickel stored in LME licensed warehouses fell on Tuesday and started today just under the 74,700 tonne level. Based on numerous media reports, LME trading was halted shortly after it restarted this morning, after hitting its 5% limit "lower". That is your news for the day. Nickel restarted, fell 5%, then was halted again - in mere minutes. For users, the keyword being lower. From a Reuters article posted yesterday and linked below - "While three-month nickel was at about $80,000 a tonne when trading was suspended on Tuesday, Monday's closing price was $48,078. That means the band on Wednesday will be $45,674 to $50,482, or 5% either side of that closing price." Cancelled warrants are down to 26.70%  from a 51.22% reading last Monday. No one appears to be pleased with the LME trading stoppage, and the frustration will grow if new stoppages are triggered. Nickel users, the ones not playing pricing games on the LME, are paying much higher prices, as the trading halt came with the price in record territory. It will take quite a few of these 5% stoppages to get nickel back to where it was trading just a few weeks ago, so nickel users have a right to be concerned. We were hoping to have some trading news today, but the day has become a non event. Stay safe out there and have a great hump day!
  
• Average price of LME traded cash nickel so far this month - $6.99/lb
  

    Tuesday's market review - Industrial metals dip as China COVID surge outweighs upbeat economic data - Industrial metals were subdued on Tuesday, as concerns over the fallout from surging COVID-19 cases in top metals’ consumer China overshadowed its upbeat economic data. - more

      LME imposes price limits for the first time after nickel crisis - Nickel will resume trading on the London Metal Exchange (LME) in a fixed price range for the first time on Wednesday after extreme volatility in prices triggered a rare market shutdown last week. - more

• Nickel’s return may leave everyone underwhelmed - more
• Tsingshan inks deals to swap nickel products for LME delivery - state media - more
  

     China Implements New COVID Lockdowns Creating Supply Chain Fears - Just as it appeared that much of the world was seeing declining numbers of COVID-19 cases and the Omicron wave might be subsiding, China announced sweeping new lockdowns in the face of rapid increases in the number of positive tests for the virus. - more

   Other News

• Reuters The Day Ahead - pdf here
• China says It wants to avoid US sanctions over Russia’s war - more
• February U.S. Producer Prices Jumped 10% from a Year Earlier - more
• Coronavirus: new cases double in China in biggest 1-day leap since Wuhan - more
• Tesla raises prices for second time in days on rising costs - more
  

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Monday's trading session unchanged. Indicators at 6:00 am CST today show nickel untraded. Stockpiles of nickel stored in LME licensed warehouses fell on Monday and ended the day just under the 75,000 tonne level. Nickel is back tomorrow, but we wouldn't be a bit surprised if it doesn't hit new daily limits right off the bat, and be halted again. Still more questions than answers floating around out there, and a bleeding fish has the sharks still circling. Wouldn't it be nice if the market truly reflected the reality of supply and demand, where we could analysis and debate what the numbers really meant to users? Speaking of being nice, American politicians, who have been real successful "warning" Russia to stop invading Ukraine, are now "warning" China not to help Russia get around Western sanctions. Have we forgotten in D.C. how to communicate with other countries? The fact that Republicans and Democrats can't be civil to one another, needs to be a communication problem that stays internal. Treat China with respect and we suspect that country will be a little more sympathetic to our security concerns. Start "warning" sovereign nations about anything invites a predictable response. With no nickel trading, please forgive us for stepping up on the soapbox, but if your sales department treated customers like our leaders treat our trading partners, adversary or not, you wouldn't be in business very long. We stated a few weeks ago that we didn't feel potential Russian sanctions would be too successful, because of the resourcefulness of China. If we would like them to be less 'resourceful', warning them does not appear to be the best avenue. But what do we know. All nickel users and stainless steel users are paying the price for the games a few big traders are playing, with Russia's invasion of Ukraine the trigger of uncertainty that brought down trading. In the mean time, LME supply statistics show the war is, so far, having a minimal effect on nickel supply. If you would like to do something to help the Ukrainian people, it might be as simple as asking your multi-national vendors a question. Does their company, or affiliates, have operations in Russia and if so, are they still operating? The Feds meet today and are expected to raise rates for the first time since 2018. Covid, something most Americans are so over with, is still exploding in some areas of the world, including South Korea, Germany, Russia, etc. The number of cases in China, compared to others, is still small, but with a zero tolerance, a few cases there can have a similar economic impact as thousands in another country. Stay safe out there and have a great Tuesday.
  
• Average price of LME traded cash nickel so far this month - $6.99/lb (adjusted),
  

    Monday's market review - Easing supply concerns, demand doubts weigh on base metals - Prices of industrial metals fell on Monday as diplomatic efforts to resolve the Russia-Ukraine conflict calmed supply-disruption fears, while demand concerns in top consumer China also weighed on the market. - more

     The 18 minutes of trading chaos that broke the nickel market - It was 5:42 a.m. on March 8 in London when the nickel market broke. At that time of day, bleary-eyed traders are typically just glancing at prices as they swig coffee on their way to the office. - more

     China's Tsingshan agrees standstill agreement on LME nickel margins with banks - China's Tsingshan Holding Group has reached an agreement with banks under which they will not make margin calls on or close out the producer's nickel positions on the London Metal Exchange (LME), the company said on Monday, a move sources said should help calm the market. - more

• The war in Ukraine has engulfed the London Metal Exchange - more
  

     How Ocean Shippers Are Coping With High Rates and Unreliable Service Contracts - With no immediate relief in sight from sky-high ocean container freight rates, shippers are faced with the question of how to negotiate with carriers for adequate capacity at a manageable price. - more

• New wave of inflation - and disruptions - hits U.S. factory floors - more
  

   Other News

• Reuters The Day Ahead - pdf here
• Coronavirus: China doubles down on zero-Covid to confront worst wave since Wuhan - more
  

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Friday's trading session unchanged. Indicators at 6:00 am CST today show nickel trading untraded. Stockpiles of nickel stored in LME licensed warehouses fell on Friday and started this week just over the 75,300 tonne level. Nickel trading remains suspended on the London Metal Exchange as the market grapples to meet LME's criteria for reopening. Much of what the LME does is a mystery to us, but we have to wonder, if Tsingshan is being forced to negotiate with banks who trade on the LME, is not their reluctance to give up short positions just inviting further volatility from the very type of people they are being forced to reveal their trade secrets too? Regardless, it appears no one is really happy with the decision to halt trading, with favoritism fingers being pointed at the LME. No one seems to be talking about the fact that the official cash price for nickel has been set at around the $50,000/tonne level now for nearly a week. Which means anyone buying right now, is paying a premium price. That is if anyone is buying. Cancelled warrants continue to drop - down to 34+% by end of day Friday. Trying to guess what will happen in Ukraine is a mystery, not only to traders, but to nearly everyone. On one side, we have the Russia leader, Vladimir Putz-in, sparking for a fight with the world, using his invasion of Ukraine and the war there as his throw down. On the other side, is U.S. President Biden, who has proven he would make a lousy poker player. Threatening an aggressive adversary, but then making sure everyone understands that threat has no teeth, is about as intelligent as announcing you're leaving a near two decade long war and not expecting your near twenty year adversary, still very much at large, to not take advantage of your departure. In the middle of this chess set by two world powers, are the Ukrainian people and their leader, President Zelenskyy, who has become a beacon of  defiance and the David in the Biblical tale of David versus Goliath. Unlike the Bible however, this story does not appear to have a happy ending, unless someone stops sending rocks for the sling shot, and steps in to make the fight a little fairer. Covid is back like gangbusters in China. This has the real potential to exacerbate already strained supply lines. Stay safe out there and have a great week.
  
• Average price of LME traded cash nickel so far this month - 
  

• LME Nickel Trade Cancellations Trigger Trader Outrage - more
  
• London Metal Exchange defends nickel suspension after 'disorderly' trade - more
• Nickel chaos resounds from stainless steel to electric vehicles: Bloomberg News - more

• Chinese tycoon's 'big short' on nickel trips up Tsingshan's miracle growth - more
• JPMorgan leads talks to resolve nickel market crisis - more
  

     Shanghai to Shenzhen, Chinese cities rush to contain Covid-19 wave as new cases cross 1,000 for second day - Surge in local asymptomatic cases sparks rumours of citywide lockdown in Shanghai - more

   How a handful of metals could determine the future of the electric car industry - As automakers race to go electric, there's a big problem lurking underground. Companies are betting hundreds of billions of dollars on electric cars and trucks. To make them, they'll need a lot of batteries. - more

   Other News

• Reuters The Day Ahead - pdf here
• Fuel-Price Hikes Hit Shippers, Truckers Across U.S. Economy - more
  

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Thursday's trading session unchanged. Indicators at 6:15 am CST today show nickel trading untraded. Stockpiles of nickel stored in LME licensed warehouses (drum roll please) rose on Thursday and ended that day just over the 75,700 tonne level. Cancelled warrants have dived to 37+% from the low 50's range last week. LME has yet to announce a resumption of nickel trading, while Shanghai did overnight. To give you an idea of what Shanghai markets have done, after only one day being closed), last Friday the nickel contract we follow ended at 190,650 yuan/mt. After climbing to 347,00 on Tuesday, it ended at 228,200 this morning. This closure seems to have thrown some serious concern on what will happen when trading resumes. There is a tonne of information floating around out there, some of it not in agreement, but all speaking with their own sense of authority. One would think the market will calm down some, but we suspect the bears may benefit, however momentarily, from the trade stoppage, as no one really knows if the situation that caused the stupidity earlier this week, still exists. One telling story out there says that Tsingshan has secured funding for his $8 billion dollar shorts (who backed this bail-out?), and wants to continue shorting nickel in the future. Norilsk Potanin has warned his own country not to take Russia back to 1917. We would add the rest of the world would be happy to help keep Russia out of revolutionary times, if they would act like they are part of the 21st century and get along with those they disagree with. Stop the invasion, stop the war, and get out of Ukraine. Simple formula really. Stay safe out there and have a great weekend!
  
• Average price of LME traded cash nickel so far this month - $15.29/lb
  

    LME says nickel market will not reopen on Friday - The London Metal Exchange will not restart the trading of nickel contracts on Friday as it had anticipated because the criteria for restarting have not been met, the exchange said in a members notice on Thursday. - more

     LME's CEO calls for more powers to intervene after nickel halt - The London Metal Exchange’s chief executive called for it to have more powers to intervene, after it was forced to halt nickel trading when prices spiraled out of control. - more

• London Metal Exchange extends nickel freeze after scrapping $3.9bn worth of trades - more
  

• EUROFER urges LME to take measures against further surging nickel prices - more
  

• China nonferrous body to help regulators stabilise nickel prices - more
  

• Chinese nickel giant Tsingshan said to have sufficient inventory for delivery - more
• The Chinese tycoon that lost billions betting against nickel reportedly wants to keep shorting the commodity - more
• J.P. Morgan Extends Loan Packages to Rescue Tsingshan - more
  

    Tesla raises price of Model 3, Model Y electric vehicles as surge in nickel cost makes batteries more expensive -The Model Y and the Performance edition of the Model 3 went up in price by 10,000 yuan (US$1,582) in mainland China - more

   Other News

• Reuters The Day Ahead - pdf here
• Don't take Russia back to 1917, Russian metals king Potanin warns - more
  

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Wednesday's trading session unchanged. Indicators at 6:00 am CST today show nickel trading unchanged. Stockpiles of nickel stored in LME licensed warehouses fell on Wednesday and ended the day just over the 74,200 tonne level. LME remains closed, as was Shanghai nickel markets today. This did not keep panic from the market though, and Chinese stainless steel futures fell to their limit overnight, and are basically back to where they ended last week. That market is so volatile, that Chinese media reports stainless manufacturers are not offering quotations at the moment.  No one seems to have any idea what nickel traders will do when the market reopens, and we suspect, that the London Metal Exchange is doing more damage control, than worrying about any particular buyer or seller. So where will stainless prices go? We doubt they will head any lower than they started the month at, because regardless of the trading games going on, the sanctions in place, are causing logistical problems for many sources. And since no one knows what will happen to the price of nickel over the next few weeks, trying to predict the price of stainless is a throw of the dice ... in the dark .... on a pitching boat .... etc. As of this morning, the LME has yet to announce a resumption of trading target. Stay safe out there and have a great day.
  
• Average price of LME traded cash nickel so far this month - $15.29/lb
  

    Wednesday's market review - Aluminium, others spiral lower as investors flee after nickel crisis - Base metals slumped on Wednesday, including aluminum despite continued worries about Russian supply, as cautious investors slashed positions in the wake of a halt in nickel trading. - more

     London Metal Exchange mulls short-selling curbs amid nickel crisis - The London Metal Exchange will consider clamping down on short-selling after a giant bet against the nickel price by a Chinese billionaire went awry and forced the bourse to suspend trading. - more

• LME scrambles to prevent damage from nickel market crisis - more
  
• China's regulators check risks to futures brokers from nickel positions - more

• China stainless steel futures hits lower limit on nickel retreat hope - Chinese stainless steel futures opened 12% lower to hit daily trading limit on Thursday, following Shanghai Futures Exchange halting some nickel trading and fuelled by ... - more
  

     SunSirs: On March 8, the Spot Price of Stainless Steel Was Not Quoted for the Time Being - (excerpt) With the sharp rise in nickel prices, most stainless steel traders are reluctant to sell because the shortage of resources is difficult to relieve in the short term, and they do not offer quotations. The market is currently in a wait-and-see mode.

• European stainless market slows amid skyrocketing costs - more
  
• European nickel trade disrupted by LME suspension - more
• His Raw Materials: Putin pushes back against oil and gas sanctions with retaliatory measures - more
• EUROFER urges LME and FCA to take necessary action to prevent further artificial surges in nickel prices - more
  

   Rising Metal Costs Threaten Automakers - As if automakers didn't have enough on their plates. The cost of auto industry metal is skyrocketing, from the palladium in catalytic converters to the aluminum in the body. - more

• ‘It’s all coming at the worst time:’ How sky-high nickel price could hamper EV efforts - more
  

   Other News

• Reuters The Day Ahead - pdf here
• War in Ukraine Triggers Global Food Emergency - more
  

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Tuesday's trading session unchanged. Indicators at 6:00 am CST today show nickel trading untraded. All of yesterday's trading was cancelled after we went to press yesterday, so while nickel has historically traded over the $100,000 tonne level, we are not sure the official records will show that. For now, the market sits where it did on Monday. Stockpiles of nickel continue to flow and yesterday they fell to just below the 74,800 tonne level. The London Metal Exchange, which is owned by Hong Kong Exchanges and Clearing Ltd., halted nickel trading yesterday, when the price momentarily rose to over $100,000/tonne. ING put it well when they stated “Fundamentals, though supportive of stronger prices, do not justify this frenzy.”.  Back on January 26th of this year, we carried a story that blamed a pull back in the price of nickel that day, to the news that Tsinghan had shipped its first nickel from Indonesia. The article we linked to (article here) stated "The fear is Tsingshan could flood the market for battery nickel the same way Chinese miners in Indonesia did, by ramping up ferronickel (nickel pig iron) exports for stainless steel to end the last nickel boom.' Apparently some at Tsingham thought so as well, since they apparently shorted nickel  in a major way (article from February here). This is a reference to the introduction to the market of the so called "pig nickel" years ago, that fundamentally changed the nickel industry. According to articles we have linked to below, mostly written yesterday, these shorts played a major role in yesterday's huge price spike, which may have encouraged LME to step in and halt nickel trading. In other words, the recent moves, may have had less to do with fears of Russian sanctions, and more to do with greed and crippling the bank accounts of a major short. Got a bad taste in your mouth yet? You would not be alone. Nothing like being the sacrificial pawn as billionaires play chess. Late yesterday it was reported LME may not resume trading until Friday. And Shanghai has advised nickel will not be traded on their exchange tomorrow.  This leaves us little to report  for the next few days, until the LME decides how to proceed. In the mean time, stay safe out there and have a great day!
  
• Average price of LME traded cash nickel so far this month - $15.29/lb
  

    Tuesday's market review - Nickel booms on short squeeze while other metals retreat -  Nickel prices more than doubled on Tuesday, forcing the London Metal Exchange (LME) to halt trading in the metal used in stainless steel and batteries for electric vehicles, while aluminium retreated from record highs. - more

• A Chinese nickel titan is staring down an $8 billion trading loss as a short squeeze sends the metal soaring, new report says - more
  
• China's Tsingshan fires nickel rally as it cuts costly exposure-sources - more
• Chinese Tycoon Behind Big Nickel Short Faces Billions in Losses - more
• LME Forced to Halt Nickel Trading, Cancel Deals, After Prices Top $100,000 - more
• Explainer: LME nickel surge puts clearing houses in the spotlight - more
• Factbox: China Tsingshan's overseas nickel footprint - more
• Column: LME nickel trading halted as big short hits big trouble: Andy Home - more
  
• Nickel price surge could add $1,000 to production of an electric vehicle: Morgan Stanley - more

•  Stainless Steel Output was Still Low in Feb, and Is Likely to Rise 20% MoM in Mar - more
  

   Other News

• Reuters The Day Ahead - pdf here
• China mulls stakes in Russian energy, commodity companies: Report - more
• Panic-buying drives up French reinforcing steel prices - more
  

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Monday's trading session at $23.10/lb ($50,925/tonne). Indicators at 6:00 am CST today show nickel trading around $13.67/lb higher. Stockpiles of nickel stored in LME licensed warehouses fell on  Monday and ended that session just over the 75,000 tonne level.  Yesterday, we spoke of the spike in nickel in 2007, that veterans still remember. Today, nickel's spike was so ridiculous, that LME suspended trading for the day. At one time this morning, nickel was trading for $101,365/tonne. Overnight, Shanghai stainless steel trading was suspended after they hit a daily limit for increase in price. Confusion has become concern, which has become fear, which has turned into panic. There was a rumor this morning that a big short was in play, but we hope that is merely a rumor. We have lived to see a day that most of us would have scoffed at last week. How does a stainless steel distributor price their stainless fairly today? We recommend pricing based on replacement value, but no factory in their right mind, should commit to a quotation today. It's time to talk to your major customers and just be frank. We are in uncharted waters and until the panic in the market subsides, you are being held hostage to the whims of an out of control market. To a degree never before witnessed. And time to have another chat with your inside salespeople. Your inventory is worth so much more than it was last week, even if the actual cost has not changed. Smart business' incentivize their salespeople to make margin, not sales, in these type of markets. Anyone can sell cheap these days, but only the foolish do. Market wont get any worse today, but tomorrow, we do it all again. Stay safe out there and good luck out there today,.
  
• Average price of LME traded cash nickel so far this month - $14.00/lb
  

    Monday's market review - Russia disruptions fuel nickel's 90% spike to record - Nickel prices rocketed 90% to all-time highs on Monday and aluminium jumped to a record above $4,000 a tonne as fears of major disruptions to supplies due to financial sanctions on Russia fuelled a buying frenzy. - more

     Stainless steel prices likely to see increases on higher demand, lower supply - Stainless steel prices are expected to see increases on higher demand, lower supply and higher raw material costs, industry sources told S&P Global Commodity Insights in the week to March 4. - more

     China stainless steel futures jump by daily limit as nickel prices soar - China’s stainless steel futures soared by their daily limit of 12% to a record high on Tuesday, as raw material nickel prices more than doubled on intensifying concerns over supply from Russia following its invasion of Ukraine. - more

• Update: Solway Investment Group firmly rejects the false and defamatory allegations - more
  

     Courtesy AISI - In the week ending on March 5, 2022, domestic raw steel production was 1,762,000 net tons while the capability utilization rate was 80.0 percent. Production was 1,760,000 net tons in the week ending March 5, 2021 while the capability utilization then was 77.7 percent. - more

       Deep-sea mining could begin next year. Here’s why ocean experts are calling for a moratorium - A troupe of environmental activists descended on Rotterdam, Netherlands, last month for an evocative demonstration. - more

   Other News

• Reuters The Day Ahead - pdf here
• China to meet ‘severe’ commodity price volatility by boosting coal supply, oil and gas exploration - more
  
• Buckle Down: No Relief From Supply Chain Woes Anytime Soon - more
• Will the Russian invasion of Ukraine affect your fabrication shop? - more
  

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Friday's trading session at $13.21/lb ($29,120/tonne) Indicators at 6:00 am CST today show nickel trading around $3.73/lb higher. That is not a misprint. Stockpiles of nickel stored in LME licensed warehouses fell on Friday and started this week, just over the 76,800 tonne level. We are having a hard time finding a verb to adequately describe this mornings jump. The market has simply gone bat s--t crazy. We are trading at levels this morning not seen since 2007, a year that sends chills thru veterans of the stainless steel industry. Anyone in the industry back then can remember May 16, 2007, when the official cash price for nickel peaked at $24.59/lb.  This morning we are trading in the $17/lb range., and no other base metals is trading anywhere near the 30% gain nickel is. Stainless steel prices in China surged last night, and are expected to do so again tonight. The concern of Russian nickel potentially being sanctioned is being used by the media to explain the spike, and with nothing else to justify the unjustifiable, we bow to their analysis. Putz-in has now made it illegal to use terms such as invasion and war, and is threatening that sanctions are an act of war. Maybe NATO should support Poland in invading western Ukraine and when the two forces meet, let Putz-in decide his next step. It might be little more than another "Berlin-type wall", but at least NATO saves some of Ukraine. Personally, we don't approve of this cowering to a madman with a nuclear arsenal, and are growing bored with his threats. In the mean time, Russia continues to invade its peaceful neighbor and Putz-in's war goes on. Now we feel like a proper law breaker. Stay safe out there and have a great week!
  
• Average price of LME traded cash nickel so far this month - $12.59/lb
  

    Friday's market review - Aluminium heads for record weekly gain, nickel surges - Industrial metals rose on Friday with aluminum headed for a record weekly gain and nickel set for its biggest rise since 2009 on worries over supply from Russia. - more

• Nickel Tops $30,000 for First Time Since 2008 Amid Short Squeeze - more
  
• Surging nickel tops $13 a pound - more
• IHS Markit Weekly Pricing Pulse: Commodity prices soar on supply concerns - more

     This Russian Metals Giant Might Be Too Big to Sanction - From its base at a former Arctic gulag, Russia’s MMC Norilsk Nickel PJSC digs up a large portion of two metals that are essential to greener transport and computer chips. - more

     Cuba and Sherrit from Canada go for more nickel and electricity - Cuba and the Canadian company Sherritt International, which has been operating on the island for more than two decades, agreed at the highest level in Havana to increase their business in nickel mining, power generation and oil prospecting. - more

     ‘Mining secrets’: Swiss minerals company accused of environmental coverup - Two subsidiaries of Swiss mining company Solway Investment Group hid reports of pollution in an indigenous area of northeastern Guatemala, an international consortium of media companies said Sunday. - more

   Other News

• Reuters The Day Ahead - pdf here
• Commodity funds in demand as investors seek refuge from soaring inflation - more
• Global Food Prices Hit Record in February, Russian Invasion Intensifies Supply Risks, as Food Protectionism Stirs - more
• Bread consumers to swallow the cost of Russia-Ukraine war - more
• Mastercard, Visa suspend operations in Russia after invasion - more
• Ukraine crisis: US Secretary of State Anthony Blinken calls on China to ‘stand up and make its voice heard’ - more
  

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Thursday's trading session at $12.20/lb ($26,900/tonne). Indicators at 6:00 am CST today show nickel trading around $.64/lb higher. Stockpiles of nickel stored in LME licensed warehouses fell on Thursday and ended that session just under the 77,100 tonne level. If you have any nickel containing stainless steel in your inventory, it is becoming more valuable by the hour. Nickel closed just under the $26,000 tonne level on Wednesday and is trading well into the $28,000/tonne level this morning. While it closed in the $27,000 tonne level yesterday, it spent only a day trading in that level, far more time than it spent trading in the $26,000/tonne level. Bulls are taking advantage of the market uncertainty and running thru the fog of war like the boogie man himself is after them. Stainless steel prices started sneaking up in China yesterday, then jumped today, reflecting the huge increase in the price of nickel. If China has no intention of following Western sanctions, then it may have a problem transporting any goods it wishes to purchase from Russia. Logistics in and out of Russia have basically shut down, with major shipping companies refusing to enter Russian ports. Nickel closed at $24,410/tonne the day before Russia invaded Ukraine and it is currently trading over the $28,300/tonne. If you aren't already, its time to get defensive with your stainless steel inventory. Sell it based off the replacement cost, not your actual cost. If you notice sales to new customers suddenly spiking, then there is a problem somewhere. Either you are too cheap or you are holding inventory no one else has. We say play defensive, because now is the time to protect and solidify the relationships you have. Everyone claims they are masters of customer service, but selling inventory you are holding for a particular customer because you can make some ridiculous profit, is not how a business partner operates. Be honest with your customer, treat them like the guy/gal who signs your paycheck, and you will find most of them will return these favors ten fold. Use the one that doesn't as an excuse to do the opposite, risks that relationship and others. Stay safe and have a great weekend!
  
• Average price of LME traded cash nickel so far this month - $12.28/lb
  

    Thursday's market review - Gas and aluminium hit fresh records; oil, wheat soar on supply turmoil -  Commodity prices raced still higher on Thursday as Russia's invasion of Ukraine entered a second week, disrupting global raw material flows and boosting natural gas, coal and aluminium to record peaks, while crude oil and wheat scaled multi-year highs. - more

      SunSirs: Stainless Steel Prices Rose more than 800 yuan/mt in Two Days - Prices of stainless steel in the Foshan market inherited the rising trend yesterday and soared today. In just two days, the prices of Delong stainless steel increased by nearly 1,000 yuan/mt, rising to 18,700 yuan/mt-18,800 yuan/mt (base price). - more

     Metal traders group urges Germany to stockpile cobalt, cut reliance on Russia - The German government should stockpile palladium and minor metals such as vanadium and cobalt as part of its raw materials strategy to reduce reliance on countries such as Russia, the Association of German Metal Traders (VDM) said on Thursday. - more

     ‘Mining their own business’ | Groups call anew for scrapping of PH mining law - Environmentalists renewed calls for the repeal of the Philippine mining law and denounced moves to allow new mining applications. - more

     Local View: Canceling Twin Metals' leases doesn't jibe with Biden's climate goals - From the column: "Americans should implore President Biden and Congress to accept the clear scientific benefits of allowing Twin Metals to proceed through the established review processes." - more

   Other News

• Reuters The Day Ahead - pdf here
• Russian oligarchs hide their yachts in the Maldives for fear of sanctions - more
  

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Wednesday's trading session at $11.76/lb ($25,925/tonne). Indicators at 6:00 am CST today show nickel trading around $.63/lb higher. Stockpiles of nickel stored in LME licensed warehouses fell on Wednesday and ended that session just under the 77,800 tonne level. Nickel bulls are stampeding again this morning, and nickel, which started the month finally closing over the $25,000 tonne level, has decided trading in the $26,000/tonne level would be boring, and is trading today above the $27,000 tonne level. Not really sure what we can add these days, as the volatility speaks for itself. As long as the fighting in Ukraine lasts, an already nervous nickel market is apparently going to trade based on a worst cased scenario. Your average monthly costs for February compared to January include - Nickel - $10.96/lb from $10.12/lb; Chromium - $5.93/lb from $5.78/lb; Molybdenum - $19.16/lb from $19.03/lb. Northern Miner is reporting that Nornickel backed "Global Palladium Fund" is forecasting a global nickel surplus of 59,000 tonnes in 2022. Stainless steel prices continue to climb, and even China sources report prices rose there yesterday. We monitor a stainless steel index inside China and it reported a price increases yesterday as well. Stay safe out there and enjoy your Thursday!
  
• Average price of LME traded cash nickel so far this month - $11.90/lb
  

    Wednesday's market review - Aluminium jumps to record on fears logistics issues will hurt supply - Aluminium prices bolted to a fresh record peak on Wednesday as investors fretted that logistical challenges would block metals supplies due to tough sanctions on major producer Russia. - more

      Stainless Steel Prices Rebounded Slightly amid Reduced Production - Stainless steel spot prices in the Foshan market remained flat in the early trading. - more

     German carmakers warn fallout from Ukraine invasion on production to get worse - German carmakers association VDA said that the fallout from Russia's invasion of Ukraine was disrupting transport routes as well as financial transactions and that it was bracing for shortages in a range of raw materials. - more

     Are reported metal stocks a good measure of market fundamentals? - Despite our reservations about the fundamental outlook for metals, demand is surging ahead – although the Ukraine conflict will, no doubt, have a negative impact. - more

• Nickel: Huge Rally Could Get Even Bigger On Russian Sanctions - more

     Mining watchdog wants a reboot of Ottawa's Ring of Fire assessment process - MiningWatch Canada is joining the chorus of some First Nation leaders in the Far North in calling for a restart of Ottawa's Regional Assessment of the Ring of Fire. - more

   Other News

• Reuters The Day Ahead - pdf here
• Russian Invasion Smothers Supplies From World’s Breadbasket - more
• Record Lead Times Show More U.S. Inflation in Supply Chain Mess - more
• War Shocks Ripple Across One of the World’s Busiest Trade Lanes - more
• Economic Fallout from Russia's War Ripples Across the Globe - more
  

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Tuesday's trading session at $11.39/lb ($25,110/tonne). Indicators at 6:00 am CST today show nickel trading around $.25/lb higher. Stockpiles of nickel stored in LME licensed warehouses fell on Tuesday and ended that session just under the 78,200 tonne level. Nickel closed above the $25,000 tonne level for the first time this rally, and is trading much higher again this morning. The unification of economic sanctions against Russia has surprised most, and it is becoming increasingly apparent that even if nickel is not sanctioned, it could become more difficult to buy nickel from Russia. Today's report of a larger than what is 'currently normal' LME stockpile drop, isn't helping the bears either. Business Insider reports the president of Norilsk Nickel, Vladimir Potanin, who happens to be the richest man in Russia, has lost $6.2 billion since his country invaded Ukraine. According to the report, he is still worth $24.7 billion, so you can dry those crocodile tears. Stainless steel prices appear to be on the rise everywhere except China, where lower than expected demand is hurting. Stay safe out there and enjoy your hump day!
  
• Average price of LME traded cash nickel so far this month - $11.54/lb
  

    Tuesday's market review - Aluminium nears record high as Russia-Ukraine conflict threatens supplies - Aluminium prices headed toward record highs on Tuesday as financial sanctions on Russia for invading Ukraine fuelled worries about supplies from producer Rusal, while concerns over shipping disruptions boosted nickel. - more

     Sibanye-Stillwater faces compensation claim for dropping Brazil mine deal - Investment firm Appian Capital Advisory has served South African miner Sibanye-Stillwater with a notice of claim seeking compensation for the latter’s termination of a planned billion-dollar acquisition of two mines in Brazil. - more

   Other News

• Reuters The Day Ahead - pdf here

  Economic Stats and Prices

  Daily Nickel/Stainless Steel Briefing 

• Nickel closed Monday's trading session at $10.99/lb ($24,235/tonne). Indicators at 6:00 am CST today show nickel trading around $.32/lb higher. Stockpiles of nickel stored in LME licensed warehouses fell on Monday and ended that session just over the 79,500 tonne level. After another big spike in the morning, nickel ended $5/tonne lower on Monday than it had closed on Friday. And this morning is starting much like it did thru much of February, with a morning spike. Rhetoric from Russia is getting more aggressive, with them now threatening Europe with retaliatory measures for sending arms to Ukraine. This is after threatening Finland and Sweden with retaliatory measures should they decide to join NATO. And of course over the weekend, Putin put his nuclear forces on alert because of something someone in the west said. It is becoming increasingly evident that the Supreme Commander of Russia is becoming, or has become, unhinged. Exports of nickel have yet to be effected but some delays are expected in light of the SWIFT sanction. We want to start March thanking our 2022 site sponsor - P A Inc. Without their support, this site could not update daily. Stay safe out there and welcome to March.
  
• Average price of LME traded cash nickel so far this month - $10.97/lb (average February)
  

    Monday's market review - Aluminium spikes to record after Russia sanctions stepped up - Aluminium prices surged to another record high on Monday after Western nations unveiled more sanctions on major producer Russia in response to its invasion of Ukraine, fuelling worries about supplies. - more

     Stainless production to reach 58 million tonnes in 2022 - MEPS estimates that world stainless steel output climbed by a double-digit percentage, year-on-year, in 2021. - more

     Commodities 2022: Analysts have mixed views for nickel market - Views of global nickel production in 2022 are spread across the board, with market analysts either viewing a surplus, deficit or balanced output in the face of robust demand and supply. - more

     Healthy demand, shortages – and now the Russia-Ukraine crisis – spur nickel’s climb to decade highs - Nickel prices climbed to their highest in more than a decade last week as low inventories, healthy demand from manufacturers of electric vehicle batteries and worries about supplies from Russia spurred buying. - more

• Metals markets prepare for chaos as Ukraine crisis worsens - more
• Russian metal exports slide as sanctions hit commodity financing - more
• Singapore to sanction Russia in ‘almost unprecedented’ move - more
• Chaos in commodities as Russia’s war on Ukraine upends trade - more
  

     How to navigate mining’s cash-flow conundrum - Commodity prices in the mining industry have been on an upswing. - more

     Courtesy AISI - In the week ending on February 26, 2022, domestic raw steel production was 1,755,000 net tons while the capability utilization rate was 79.7 percent. Production was 1,740,000 net tons in the week ending February 26, 2021 while the capability utilization then was 76.8 percent. - more

   Other News

• Reuters The Day Ahead - pdf here
• Ukraine crisis: crude oil price soars as sanctions on Russia spur fear of a global energy crisis - more
  

  Economic Stats and Prices