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Nickel prices plummet
Propurchaser
Nickel prices have plunged about 40 per cent since peaking last May at US $23.50 per pound. At the end of July, the metal was trading in the $31,700 range ($14.40 per pound).
It’s a classic case of demand destruction. As nickel prices soared more than fourfold over the past two years, stainless steel prices soared along with them.
Producers (who consume the bulk of nickel) were spurred on by irate customers to find ways to produce rust-free steel using less nickel, which many did. At the same time, many customers changed materials: either outright substitution to commodities such as aluminum or stainless steel specifications that contain less nickel.
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