Stainless MMI: Subindex Drops As Nickel Prices Show Weakness
MetalMiner | May 10, 2019 03:40AM ET
The Stainless Steel Monthly Metals Index (MMI) declined this month, dropping by two index points to 69. A few of the prices in the basket registered fair declines, with nickel prices showing weakness.
The LME primary nickel 3-month price decreased nearly 8% over the course of April. While prices showed strength early in the year into March, prices faltered and began to trade sideways.
Source: MetalMiner analysis of FastMarkets
More recently, however, prices appear on a declining trend, which could indicate a pricing correction, rather than a shift in trend.
Source: MetalMiner analysis of FastMarkets
However, with negative volume still high — as indicated on the weekly chart of LME nickel prices with trading volume shown along the bottom — the correction remains in progress.
h2 China’s Economic Performance Matters for Prices/h2The present global economic outlook could be characterized as uncertain in the face of ongoing trade talks between the U.S. and China.
After much press early in the year over China’s slower rate of growth, with forecasts shifted downward at the start of the year, the FXI — an index of large-cap Chinese companies — surprised the market with a show of strength.
Get The News You Want
Source: MetalMiner analysis of Yahoo (NASDAQ:AABA).com data
Chinese stimulus measures helped bolster the economy’s performance. Recently, however, the boost seemed to lose steam; meanwhile, the FXI uptrend waned.
h2 The U.S. Economy Grew in Q1; Some Sectors Lagged Behind/h2Economic indicators continue to fluctuate into 2019, for both the U.S. and China.
For example, while Q1 growth appeared stronger than expected in the U.S., construction spending and new home starts showed weakness in March, while new auto sales slowed this year. China’s performance remains mixed, with auto sales also weak there.
h2 Domestic Stainless Steel Market/h2This month, the 304/304L-Coil and 316/316L-Coil NAS Surcharges dropped to $0.63 and $0.92 per pound, respectively, from $0.64/pound and $0.93/pound at the beginning of April.
h2 What This Means for Industrial Buyers /h2Downward-trending prices provide good news for industrial buyers, with stainless steel prices showing weakness this month overall.
For more detailed price guidance, request a free two-month trial to our Monthly Metal Buying Outlook .
h2 Actual Stainless Steel Prices and Trends/h2Stainless steel prices showed weakness, with price declines hitting the subindex.
In particular, LME nickel prices fell 7.9% month over month to $12,210 mt. Primary nickel prices in China and India fell by 3.5% and 5.8%, respectively, with Chinese primary nickel averaging $15,412/mt and Indian primary nickel averaging $12.49 per kilogram.
by Belinda Fuller
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.