Canadian Mining Journal

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NICKEL PRICE: $20/lb barrier broken

The price of a pound of nickel has reached an all-time high, topping US$22 on March 16. That figure represents a si...


The price of a pound of nickel has reached an all-time high, topping US$22 on March 16. That figure represents a six-fold gain in only five years and a 37% jump since the first of this year. The soaring price is a combination of low stockpiles, high stainless steel demand and the booming economies in China and India.

After hitting its high last Friday, the price of nickel slid back to just under US$21/lb at 8 am on Wednesday morning.

Such is the nature of commodity prices. A strong economy boosts demand, which in turn pushes prices up. Producers ramp up production and hustle to bring new mines onstream. When prices get too high, users seek substitute materials, lowering demand, and the prices retreats. That is the basic market correction scenario.

Base metal price charts are available free of charge at www.KitcoMetals.com and www.LME.co.uk. A subscription service offering in-depth analysis tools and news is available at www.BaseMetals.com.


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