More on nickel strikes and damaged ships.
DJ LME Nickel Supply Woes Leave No Reason To Sell -Traders-3
Traders had expected some of the heat to be taken out of the nickel price
after a four-month strike at Eramet SA's (13175.FR) New Caledonia operations
ended overnight. But the company lost between 4,000-5,000 tons of output with
the Doniambo smelter having been down 50 tons a day since Sept. 25.
"Even if the strike's over, the loss of metal is significant to the market
because it's so tight," one LME trader in London said.
At the same time, it appears the cargo of at least 1,000 tons of nickel on
board damaged container ship the MSC Napoli will be rescued. The ship's agent,
Geneva-based Mediterranean Shipping Co., or MSC, said it is being towed into
the port of Le Havre with its cargo intact. Deliveries of the ship's metal
cargo, some of which was destined for customers in South Africa, will now be
late.
Customers won't be able to go to the market to source material, because
there's just 4,410 tons available to the market out of a total 5,178 tons in
LME warehouses.
As of 1630 GMT, LME nickel was trading at $36,000/ton.
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