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Can anyone give me a approximate estimate of what grade nickel is economical to mine in Australia, Is 1.40% Ni economical? with a resource of around 8 MT...
Nickel is economic when the cost of selling is greater than the cost of producing.Can anyone give me a approximate estimate of what grade nickel is economical to mine in Australia, Is 1.40% Ni economical? with a resource of around 8 MT...
Nickel Drops in London on Demand Speculation; Copper, Zinc Fall
By Chanyaporn Chanjaroen and Brett Foley
June 19 (Bloomberg) -- Nickel declined in London for a second consecutive day on speculation stainless-steel makers will continue to cut usage after an earlier price rally. Copper and zinc also fell.
Nickel's 19 percent gain this year has made the market ``overheated,'' analysts including Tobias Merath at Credit Suisse Group in Zurich said. Such increases have reduced usage among stainless-steel producers, which account for two-thirds of consumption worldwide, Merath said today in a phone interview.
``Prices will fall to around $36,000, $37,000 in the next three months,'' Merath said. ``Nickel has been overheated since the beginning of this year.''
Nickel for delivery in three months on the London Metal Exchange dropped $1,175, or 2.9 percent, to $39,225 a ton as of 12:55 p.m. local time. The contract fell 4.3 percent yesterday, the largest drop in four days. It traded at $38,900 on June 14, the lowest since Feb. 22.
A drop in usage at companies including Outokumpu Oyj, the world's third-largest alloy producer, has helped push down the price 20 percent from a record $51,800 a ton on May 9. The metal will move into a ``significant'' surplus next year, after supply is expected to meet demand this year, Goldman Sachs JBWere Pty, the Australian affiliate of the world's biggest securities firm, said June 14.
Reduced consumption created a 40 percent increase in stockpiles this year. Inventories monitored by the LME dropped 12 tons to 9,276 tons, the exchange said today in a daily report.
Aluminum Tax Incentives
Copper fell $110, or 1.5 percent, to $7,430 a ton, snapping three days of gains. Last week, the contract rose 5 percent amid strike threats at mines in South America, including one at Codelco, the world's largest copper producer.
Codelco's contract workers pushed pack the start date of a planned strike by at least one day to June 21, Cristian Cuevas, president of the Confederation of Copper Workers, said yesterday. This was the second time the group delayed a walkout this month.
Aluminum gained $8, or 0.3 percent, to $2,713 a ton. China, the world's biggest producer, will remove tax incentives on exports of the metal used to make cars, planes and beverage cans to help rein in a record trade surplus. The government will remove the tax rebate on shipments of aluminum rods and bars from July 1, the Ministry of Finance said today. The rebate on aluminum products is now 8 percent to 11 percent.
``This is a very positive sign for aluminum as it shows that the government is serious about curbing production and exports,'' Robin Bhar, a London-based analyst at UBS AG, said today in a report. Exports of aluminum products almost doubled in the first five months of this year from a year ago, according to customs data.
Zinc fell $60, or 1.6 percent, to $3,625 a ton, taking this year's drop to 14 percent, the most of any of the six metals traded on the LME. Production of the metal used to galvanize steel rose 10 percent in the first four months of 2007, beating usage by 53,000 metric tons, the International Lead and Zinc Study Group said today.
Lead gained $5, or 0.2 percent, to $2,395 a ton. Demand for the metal used in batteries beat supply by 4,000 tons over in the first four months of this year as output grew 1 percent, the ILZSG said. Lead traded at a record $2,430 yesterday.
Tin was unchanged at $14,200.
Hi Brend,
PON is now back to around Jan 07 level. Do you see any end in sight of this sell off soon?
Thanks in advance, joeljp
Thanks Brend! What time frame are you looking at for cotton? 6-12 mths or purely a short term play?
Cheersm joeljp
Nope, its not over yet. I can't afford to short even 1 lot of nickel futures, so to tap on falling nickel price, I have invested in companies that have previously been hurt by high nickel price.[/url]
hi Brend, two consective up days for Nickel when stockpile continues to grow. I'm confused! Are the hedge funds back in again? I'm just wondering if we will ever see the $20/lb mark again!
YesNickel is back up again.
Yes
But for how long?
I still see further price weakness - possibly to $25K, but very likely to dip below $30k while inventory builds continue.
I would caution against betting too much on a bounce at this stage as the price trend remains to the downside - a trend that is holding firm.
Yes
But for how long?
I still see further price weakness - possibly to $25K, but very likely to dip below $30k while inventory builds continue.
I would caution against betting too much on a bounce at this stage as the price trend remains to the downside - a trend that is holding firm.
Lots of dead cats out there.Nickel better bounce from here or the $30K level will quickly turned into resistance as Nickel will trade much lower.
Muzz
Lots of dead cats out there.
Look for $20k as support.
I will peg medium term resistance at $25k.
The real bounce is likely in the 4th quarter.
This quarter may see some late consolidation, but I don't think there can be a meaningful bounce for several months.
Overall (ie looking into 2008) I see a more settled market with little chance of $40k being breached unless pig nickel is unable to maintain its "substitute" status.
I like MRE for yield.Hey red, what do u think of MRE now? Might be a buy soon? its got great yeild for at least 1 year ill say, plus maybe a nickel price rebound like lead?
thx
MS
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