Reuters reported that premiums for physical nickel in Europe eased from last month as demand worries for the stainless steel material dominate.

Traders said that premiums for briquette NI RDM BRQ over LME cash prices CMNI0 ranged from USD 300 to USD 450 from around USD 350 to USD 550 in May.

They said that premiums for full plate nickel NI RDM FP were at USD 50 per tonne to USD 100 per tonne, versus USD 50 to USD 150 and for cut nickel NI RDM CT premiums were at USD 300 to USD 400 versus USD 300 to USD 450 last month.

One trader said that sentiment is weak. Nickel prices have fallen. Some of the stainless steel stockers are trying to postpone or cancel their orders from stainless steel mills. The market is pressured for the time being.

Nickel prices were under pressure for much of May and still look vulnerable. Demand from the stainless steel industry is easing for seasonal reasons but more than would normally be expected. Stainless steel production accounts for around two thirds of nickel demand and stainless buyers have been holding off making purchases.

(Sourced from Reuters)