Nickel prices at US$24/lb were crazy, and all it did was to force the Chinese to start making nickel in pig iron. As a user of stainless steel, I can tell you most of this Chinese made s.s. is garbage. You cannot make high grade s.s. from this rubbish. The Chinese are already getting backlash from customers who have purchased s.s products from them. Who wants a s.s sink that is pitted and rusted in 12 months, or a propellor shaft that bends in the middle because the wrong grade of s.s was used. Many businesses are starting to realise that it is far better to manufacture from quality materials once than to make it from garbage and then having to replace it every 5 years.
It is interesting to note that LME nickel stocks have been dropping slowly but the nickel price hasn't increased, whereas copper stocks are increasing but the Cu is still at a relative high.
MRE at 71.5 cents is a buy.
MRE Price at posting:
71.5¢ Sentiment: Buy Disclosure: Held
