Prices have moved up and down throughout the week, in quite significant swings, but have now returned to a level that makes it look as though nothing has really altered all that much. This demonstrates the current volatility of the markets, with prices affected almost daily, but with no real overall impact seen as yet.
The markets will most likely be quieter over the Easter break and possibly for a short time after but short and mid-term predictions regarding prices are bullish as the current availability of cheap money is making commodity investment more attractive to speculators.
Most buyers are agreed that there is still a definite lack of material readily available.
Dealers were happy to report another week of stability as far as prices are concerned. A weak sterling continues to offset any fluctuations, and it remains difficult to predict the way the market will go over the coming weeks. The ongoing lack of material continues to dominate the market with most traders commenting that there is heavy competition for what little material is out there.
Nickels and Alloys
There has been a marked increase in prices this week on account of rising nickel prices. Nickel prices have in fact crossed the $24,000 per tonne mark for the first time since summer 2008, largely due to concerns about the current supply deficit which, some analysts believe could drive the price as high as $30,000 per tonne before too long if the current deficit continues.
Demand for ingots from both domestic and foreign markets is currently at an unprecedented level which is forcing prices up to highs not seen since about 2006. While the raw material is there, it is at a price, forcing everyone to pay a premium for what little is available. Merchants believe these high prices will be sustained for at least the next couple of months but demand is expected to reduce in the quieter summer months which will in turn impact on prices.
High Value Metals
Some of the high value metals have risen slightly this week amid dollar weakness with Platinum up by 0.12p/gramme and Palladium up by 0.31p/gramme. The price of fine gold has also followed suit and is up by 0.16p/gramme. The rise in gold prices has been attributed to a report from the mining industry that gold demand in China would double in the next 10 years.