Daily Nickel/Stainless Steel Briefing (7:00 AM CST is 12 PM in London)

• Nickel closed Tuesday's trading session at $6.39/lb . Indicators at 6:20 am CST today show nickel trading around $.08/lb  . Nickel is now trading in territory it has not in over a year. Analysts can argue about what started this bull run, but the $14,000/tonne level fell less than a week after the $13,000 tonne level did. Users look for answers in times like this, and frankly, there are none to be had. The bull run is now feeding on itself, as more and more investment dollars pour in, as investors look to get their piece of the action. These are uncomfortable times for downstream users [nice way of phrasing that, eh?]. These are days when manufacturers give quotes with a warning they might only last as long as the phone call does.  Next major resistance, if we can call it that, would be the 2018 high of $6.47/lb. That rally had started in May 2017, on future production fears and potential shortages based on EV projections - a rally that gave out a year later, on May 1, 2018. Nothing actually changed, except maybe the US and China not playing well in the sandbox; something that really has yet to change back.  It is worth noting that on July 16th of last year, LME nickel stockpiles recorded 263,298 tonnes. Stockpiles fell yesterday and started today just under the 148,400 tonne level. They have fallen by not quite a half, but for anyone following the market over a long period of time (this site is over 10 years old), it is VERY concerning. A reminder for those new to the industry. On May 16, 207, cash nickel traded for $24.58/lb. Can it get worse than that? Well not many people were talking about EV back then, so yes .... yes it could. Let's hope it doesn't. Cancelled warrants fell under the 30% range yesterday, for the first time since January. This is a number tat used to mean something, but far less today.
• Average price of cash nickel so far this month - $5.77/lb
• Average price of LME traded nickel in first half of 2019 - $5.59/lb / 2018 - $5.95/lb / 2017 - $4.73/lb / 2016 - $4.36/lb /

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