Nickel Set to Flood the LME, Turning Metal Squeeze Into Glut.

Macquarie estimated the cost of converting nickel pig iron into nickel metal would be less than $5,000 a ton, compared to average discounts of around $8,000 a ton versus the LME price over the past year. Nickel pig iron and ferronickel have been trading at around half the level of the LME price per ton of nickel, "something that is unprecedented in the history of the nickel market", the Macquarie strategists including Jim Lennon wrote. [Extracted from the article]