Maybe it is the rise in Nickel stockpiles which is depressing the price of MCR. Why MCR is hit harder than the other nicklers is another matter.
Article from Bloomberg.
Nickel Falls in London as Stockpile Jump Indicates Weak Demand
By Chanyaporn Chanjaroen
April 7 (Bloomberg) -- Nickel fell after stockpiles tracked by the London Metal Exchange rose to the highest in more than eight years, indicating demand hasn't yet recovered.
LME-monitored stockpiles jumped 2,064 metric tons, or 4.1 percent, to 52,014 tons, the highest since July 1999. About half of the increase was in Rotterdam, Europe's largest port, and the rest in Singapore, the LME's largest warehouse location in Asia.
``Nickel demand has not recovered,'' Citigroup analysts including Craig Sainsbury in London said today in a report. ``It seems more long-term demand destruction may have taken place.''
Nickel for delivery in three months slid $400, or 1.4 percent, to $28,800 a ton as of 11:10 a.m. in London. It fell 21 percent last year, the biggest decline among metals on the exchange, as stainless-steel makers cut output by 2.9 percent on weaker demand and record nickel prices in the first half, according to the International Stainless Steel Forum. About two- thirds of nickel supply is used in stainless-steel production.
Stainless steel containing nickel accounted for 51 percent of fourth-quarter output, down from 80 percent a few years ago, the Brussels-based International Stainless Steel Forum said April 4.
Copper fell $40, or 0.4 percent, to $8,635 a ton, after gaining as much as 0.8 percent on speculation more disruptions at mines in South America may curb supply.
Goldman Sachs Group Inc. analysts including Peter Mallin- Jones in London raised their forecast for copper this year by 6.6 percent, citing ``reliability problems'' at mines in South America. Copper for immediate delivery will average $7,791 a ton this year, 9 percent higher than the 2007 average, the analysts said.
Copper Stockpiles
``Reliability problems at various mines in Latin American have trimmed approximately 60,000 tons from our prior forecasts,'' the analysts said.
Copper inventories tracked by the LME rose for a fourth day, increasing 1,000 tons, or 0.9 percent, to 116,150 tons. They have dropped 41 percent this year. Including those at commodities exchanges in Shanghai and New York, stockpiles stood at 185,169 tons, or 3.6 days of global consumption. That's below last year's average of 4.9 days.
Hedge-fund managers and other large speculators increased their net-long position in New York copper futures in the week ended April 1 by 27 percent, according to U.S. Commodity Futures Trading Commission data. Speculative long positions, or bets prices will rise, outnumbered short positions by 9,581 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report last week.
Aluminum added $7 to $2,960 a ton and lead advanced $10 to $2,950. Zinc increased $35 to $2,400 and tin was unchanged at $20,200 a ton.
To graph technical gauges for nickel: Moving Averages Relative Strength Index Fibonacci Back Test Technical Gauges
To contact the reporter on this story: Chanyaporn Chanjaroen in London at [email protected]
Last Updated: April 7, 2008 06:18 EDT
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MCR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
