Are you keeping up with the latest trends in the metal trading industry? If so, you’ve likely heard about the rollercoaster ride that LME nickel has been on over the past year. From plummeting prices to a period of instability, it’s been a wild time for anyone invested in this commodity. But now, there’s good news to report: LME nickel is finally showing signs of recovery and returning to regular trading hours. So what does this mean for traders and investors alike? Let’s take a closer look at how things are shaping up for one of the most important metals in modern manufacturing.
Background on LME Nickel
The London Metal Exchange (LME) nickel futures market has been under pressure for much of the past year as a result of global trade tensions. However, in recent months, the LME nickel market has seen a gradual return to regular trading hours. This is largely due to increased demand from China and other key buyers.
The LME nickel market was hit hard by the global trade tensions that started in early 2018. The tariffs imposed on both imported and exported goods led to an increase in the cost of raw materials, namely nickel. This raised the price of LME nickel futures and caused a decline in demand.
However, as global trade tensions have eased, so too has the demand for LME Nickel futures. This has led to a gradual improvement in the market conditions over the past few months. In fact, since mid-November, there has been an average daily volume of 1,377 contracts – more than double the previous averageDaily volume was 711 contracts back in November 2017.
This gradual improvement suggests that LME Nickel futures are gradually returning to normal trading conditions after experiencing significant pressure earlier this year.
The Recent Turmoil
The recent turmoil in the nickel market has some investors feeling uncertain about the future of this metal. However, despite the volatility, the LME nickel market has continued to recover and is now back to regular trading hours.
Since late 2017, there have been a number of controversies surrounding the nickel market. The main issues have been supply and demand dynamics, with many countries producing more nickel than they need domestically and selling much of it on the global exchange markets at inflated prices.
This has resulted in a significant slump in prices, with the LME nickel price losing almost 40% of its value between December 2017 and February 2018. However, despite these challenges, the LME nickel market has steadily recovered over the past few months.
As of March 9th, 2018, the LME Nickel Price was US$8,151 per metric tonne – up from US$6,528 at its lowpoint earlier this year. This gradual recovery suggests that there are still long-term fundamentals underlying the nickel market that will support price growth over time.
How LME Nickel Navigated the Recovery
LME nickel prices recovered in late February after a period of volatility and resumed regular trading hours on March 1st. The market has been gradually trending upward since then, with LME nickel prices reaching a new all-time high on May 2nd.
The reason for the market’s overall recovery is not clear, but analysts attribute it to increasing global demand and higher refinery production levels. In 2017, the world population reached an all-time high of 7.3 billion people, which is projected to grow by another 1.2 billion people by 2030. This growth in demand for materials such as nickel will likely result in increased mining activity and higher refinery output levels.
In response to the market’s recovery, LME Nickel has raised its benchmark price twice this year – from $8,200 per tonne in January to $9,600 per tonne in February and from $10,000 per tonne to $11,200 per tonne in May. The company plans to raise the benchmark price again next month by 10% to reflect recent market trends.
Lessons Learned for Future Trading Hours
In the aftermath of a period of turmoil, the LME Nickel market has navigated a recovery and is now back to regularly trading hours. Here are some lessons learned for future trading hours:
-Delay decisions: during periods of turmoil, it is important to delay decisions until the market settles. This allows for more accurate information gathering and avoids making hasty or biased decisions that could negatively impact an investment.
-Stay disciplined: even in difficult times, maintaining discipline can help ensure success. When individuals allow themselves to become emotionally attached to their investments, they are more likely to make mistakes. Holding fast to a set investing philosophy can help reduce the likelihood of succumbing to these temptations.
-Monitor volatility: when markets are volatile, it is important to monitor trends closely and stay alert for potential opportunities. Increased volatility can be a sign of opportunity as it often indicates that there are strong buying and selling pressures present.
Conclusion
Following months of turmoil and speculation, LME Nickel has successfully navigated its recovery and is now back to regular trading hours. The metal’s price performance over the past few weeks has been impressive, with both spot and futures prices surging by roughly 30%. This resurgence in buying interest may be due to a number of factors, including worries about global economic growth, war-ravaged Syria, Brexit negotiations and U.S. tariff hikes on Chinese goods. While it is too early to say for certain what the future holds for LME Nickel, this latest phase of volatility provides an interesting snapshot into market sentiment at the moment.
