Nickel Prices Fall Near 2009 Lows
MetalMiner | Aug 26, 2015 04:49AM ET
Nickel has already halved its year-to-date value after peaking in May 2014.
This week prices fell below the $10,000 per metric ton, a physiological resistance level. Prices are now approaching the record low of 2009 when prices hit $8,850/mt. If so, nickel would be the first industrial metal to fall below recession levels.
Graph: MetalMiner
The slump in prices made some producers cut output and we’ve heard people talking about a price spike as producers are underwater. But as you are aware, production costs do not determine prices; investors do.
The bearish momentum in China’s stock market and the commodities markets will keep a lid on nickel prices and, in our view, prices could keep sliding. Why not? They’re already nearing the lows of 2009.
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