Bloomberg reported that nickel stockpiles monitored by the London Metal Exchange reached a 16 month high on deliveries into Rotterdam warehouses.

Daily exchange figures showed that inventories rose 498 tonnes or 0.4% to 118,662 tonnes, the highest level since April 19th 2011. Stocks are up by 32% in 2012. Rotterdam holds 58% of total inventories.

Mr Wiktor Bielski, an analyst at VTB Capital Plc in London, said in a report that "Demand for stainless steel, the main source of nickel consumption, has steadily fallen back in line with the slowdown in global growth."

According to the Royal Bank of Scotland Group Plc, the industry accounts for 65% of nickel usage.

According to Barclays Plc, nickel output will exceed demand by 60,000 tonnes in 2012 and 18,000 tonnes in 2013. The metal for three month delivery fell 12% in 2012 on the LME, the most among the six main industrial metals traded on the exchange. Prices will rise as demand starts to improve in 2013.

Lead stockpiles monitored by the LME declined 1,100 tonnes to 311,475 tonnes, the lowest level since August 15th 2011. Copper inventories dropped the most in almost four months to 230,175 tons.

Source - Bloomberg

(www.steelguru.com)