Nickel near one-year low

Melbourne
London nickel held around a 14-month low on Wednesday, as a relentless rise in exchange-held nickel stocks overshadowed expectations of a shortage of nickel ore towards the end of the year.
China’s stocks of nickel ore, used to make stainless steel, have dwindled following an export ban by Indonesia at the start of last year, raising expectations producers will have to turn to nickel instead.
LME prices jumped more than 50 percent early last year, but have since slumped back to trading levels in place before the ban.
“Clearly the bulls have capitulated,” said strategist Daniel Hynes of ANZ in Sydney, adding that there appeared to be no sign of nickel ore being replaced with nickel in China.
LME stocks have surged by 30 percent in the past six months alone, hitting a string of record highs, to around 430,000 tons. Three month nickel on the London Metal Exchange (LME) edged higher to $13,730 a ton by 0700 GMT, after hitting its lowest since January 2014 at $13,610 a ton on Tuesday.