LME nickel inventory to break the 100k tons London Metal Exchange (LME) stocks of nickel are falling at an unprecedented rate.
Another 8,898 tonnes left the exchange’s warehouse system on Tuesday, meaning stocks have slumped by almost a third in the last two weeks.
Headline inventory of 108,624 tonnes is the lowest since 2012. Strip out metal awaiting physical load-out, and “live” stocks of 49,494 tonnes are the lowest since 2008.
Disappearing stocks are adding fuel to the bull fires that were lit when Indonesia announced at the start of September it would bring forward to next year a ban on exports of nickel ore.
LME three-month nickel is trading around $17,600 per tonne, up over 60% on the start of the year in sharp contrast to the rest of the base metals, which are mostly in negative territory due to global manufacturing weakness.
The stocks exodus is now creating a rolling squeeze on the London market.
This does not reflect physical supply-chain tightness. Buyers are backing off from the high price with physical premiums imploding.
But it is clear that someone is betting big that the Indonesian ban will generate a supply hit causing real-world tightness in the not-too-distant future.
https://www.reuters.com/article/metals-nickel-ahome/column-lme-stocks-grab-feeds-nickels-raging-bull-fires-andy-home-idUSL5N26U3N9