Since prices began their descent in September 2014, many producers have been hopefully awaiting production cuts (from others), but no major cutbacks have been announced.
This week’s London Metal Exchange sell-off brought new multi-year lows, with intraday prices dipping as low as $10,430 per tonne on Wednesday July 8, a drop of nearly 50% since reaching around $19,000 in September.
Three-month nickel was trading at $10,790 at the time of writing.
While those on the wrong side of this week’s moves will still be licking their wounds, many see this as the catalyst needed to finally drive out excess production and pave the way for a sustained recovery.
“There must be some producers who will start to cut back. Until now, nickel hasn’t been bad enough for cuts. Everyone was still waiting for a nickel pig iron shortage. This still has to happen, but I...