USW Local 6500 walked off the job June 1
Author of the article:Reuters
Publishing date: Jul 09, 2021 •
United Steelworkers Local 6500 members picket at Vale's Frood-Stobie Complex in Sudbury, Ont. on Monday June 14, 2021. John Lappa/Sudbury Star/Postmedia Network
LONDON — Nickel prices hit their highest in four months on Friday on firmer seasonal demand and renewed buying by investors bullish on the metal’s prospects in a green economy.
Copper and other industrial metals gained a shot in the arm after top commodities consumer China said it will cut the amount of cash that banks must hold as reserves to boost economic recovery.
Benchmark nickel on the London Metal Exchange (LME) had gained 2.2 per cent to $18,740 a tonne by 1615 GMT (or US$8.4890 a pound), its strongest since March 3.
Financial markets have been jumpy this week on worries that a rise in cases of the Delta coronavirus variant would crimp global growth.
“If you’re worried about growth, then maybe nickel is a good insurance policy,” said independent consultant Robin Bhar.
“We’re going to need nickel for batteries in electric vehicles and energy storage regardless of the business conditions because we have to go green.”
Nickel is the key metal mined in Sudbury by Vale and Glencore, two of the city’s biggest employers. The price surge comes as 2,400 members of Steelworkers Local 6500 are on strike.
Vale’s production and maintenance workers walked off the job June 1, after rejecting a contract offer members say contains unnecessary concessions. They rejected a second offer two weeks later for the same reason.
Vale has said it needs changes to its collective agreement with Local 6500 to justify investments in its Sudbury operations.
No new contract talks have been announced. Operations in Sudbury – one of the world’s major nickel producers – remain idle as the labour dispute continues.
In the meantime, nickel prices remain high. While nickel demand for electric vehicle batteries is forecast to climb in coming years, stainless steel still accounts for the bulk of nickel consumption.
Stainless steel prices have surged by 25 per cent since late April.
On the Shanghai Futures Exchange, stainless steel futures for August delivery jumped 1.6 per cent on Friday to 17,360 yuan a tonne, the highest level since the contract’s launch in 2019.
Citi this month lifted its three-month price forecast for LME nickel to $20,500 a tonne, it said in a note, citing indicators showing emerging market tightness.
– LME nickel inventories are at their lowest since last year at 228,612 tonnes, data showed on Friday.
– China will cut the amount of cash that banks must hold as reserves, releasing about 1 trillion yuan ($154.2 billion) in long-term liquidity to underpin its post-pandemic economic recovery.
– China’s factory gate prices rose at a slightly slower pace in June, in line with expectations, while consumer inflation also eased.
– LME copper gained 2.1 per cent to $9,514 a tonne.
— with files from The Sudbury Star
LONDON — Nickel prices hit their highest in four months on Friday on firmer seasonal demand and renewed buying by investors bullish on the metal’s prospects in a green economy.
Copper and other industrial metals gained a shot in the arm after top commodities consumer China said it will cut the amount of cash that banks must hold as reserves to boost economic recovery.
Benchmark nickel on the London Metal Exchange (LME) had gained 2.2 per cent to $18,740 a tonne by 1615 GMT (or US$8.4890 a pound), its strongest since March 3.
Financial markets have been jumpy this week on worries that a rise in cases of the Delta coronavirus variant would crimp global growth.
“If you’re worried about growth, then maybe nickel is a good insurance policy,” said independent consultant Robin Bhar.
“We’re going to need nickel for batteries in electric vehicles and energy storage regardless of the business conditions because we have to go green.”
Nickel is the key metal mined in Sudbury by Vale and Glencore, two of the city’s biggest employers. The price surge comes as 2,400 members of Steelworkers Local 6500 are on strike.
Vale’s production and maintenance workers walked off the job June 1, after rejecting a contract offer members say contains unnecessary concessions. They rejected a second offer two weeks later for the same reason.
Vale has said it needs changes to its collective agreement with Local 6500 to justify investments in its Sudbury operations.
No new contract talks have been announced. Operations in Sudbury – one of the world’s major nickel producers – remain idle as the labour dispute continues.
In the meantime, nickel prices remain high. While nickel demand for electric vehicle batteries is forecast to climb in coming years, stainless steel still accounts for the bulk of nickel consumption.
Stainless steel prices have surged by 25 per cent since late April.
On the Shanghai Futures Exchange, stainless steel futures for August delivery jumped 1.6 per cent on Friday to 17,360 yuan a tonne, the highest level since the contract’s launch in 2019.
Citi this month lifted its three-month price forecast for LME nickel to $20,500 a tonne, it said in a note, citing indicators showing emerging market tightness.
– LME nickel inventories are at their lowest since last year at 228,612 tonnes, data showed on Friday.
– China will cut the amount of cash that banks must hold as reserves, releasing about 1 trillion yuan ($154.2 billion) in long-term liquidity to underpin its post-pandemic economic recovery.
– China’s factory gate prices rose at a slightly slower pace in June, in line with expectations, while consumer inflation also eased.
– LME copper gained 2.1 per cent to $9,514 a tonne.
— with files from The Sudbury Star
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