The US 4x4inch cathode spot premiums for refined nickel dropped this week as demand from stainless steel consumers remained soft.
Nickel premiums for full truckload melting grade 4x4inch cathodes were assessed at 60-65¢/lb, down from 65-70¢/lb, while premiums for briquettes were assessed unchanged at 30-35¢/lb from last week.
Nickel prices have been volatile on the London Metal Exchange (LME) recently, falling to a 30-day low this week. The official three-month LME nickel settled at $16,280/metric tonne (t) on Thursday, down by 3.6pc from $16,880/t on 17 October.
Specialty stainless steel demand is expected to be soft for the balance of the year. Spot nickel market has been quiet, with most consumers requirements were mostly satisfied with annual contracts.
Sources reported 4x4inch off cuts from Indonesia were offered to US consumers at a reduced rate. The US is not necessarily a preferred destination for Indonesia nickel due to transportation delays and payment terms.
Global nickel stocks in LME warehouses increased by 1.1pc to 135,816t, from 134,322t a week earlier.
The LME nickel daily cash month-to-date average for October is $17,101/t ($7.76/lb), compared with the full month September average of $16,117/t ($7.31/lb).
