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(AMM) US nickel premiums still under pressure

September 03, 2010 - 20:49 GMT Location: NEW YORK

KEYWORDS: nickel , premiums , Vale

U.S. nickel premiums remain under pressure ahead of the long Labor Day weekend amid talk that Vale SA is selling at ever-lower levels in a bid to win back business following the restart of its Sudbury, Ontario, operations, market participants told AMM.

Premiums were steady Friday, with melting-grade briquettes at 60 to 90 cents per pound and plating material at $1.20 to $1.40 per pound. Both grades have fallen sharply since Vale resumed operations at Sudbury in July after a year-long strike over wages. Talk circulated of material changing hands at levels below the melting-grade range.

"It's the specter of (Vale) Inco. There's not much more supply, but the threat (of fresh production) is enough," one trader said, pegging melting-grade premiums at 60 to 70 cents per pound. "It was well over $1 and now it's closer to...

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