A ship wreck causes price rise in Ni

[arunmrao]

MCS Napoli. A news item about a British flagged freighter on a Heat Treat News Website? Bear with us and you will see the connection. The Napoli struck a rock in the English channel about 80 KM off the UK coast January 18. The ship sank shortly after the crew abandoned ship and it is not yet known whether the cargo can be recovered. And what did the cargo include? How about 1,000 tons of nickel probably destined for a Stainless Steel mill in Spain? Speculation amongst commodities traders is suggesting that this will cause nickel to increase from their already record levels and certainly for one reason or another this is what has been happening over the past week. Nickel at the time of this posting was just over $18.00 US/pound which is probably a new record. All of this means that a heat treater in California could wind up paying more for their radiant tubes and base trays all because a ship in the English Channel struck a rock. Amazing

 

[FredGarvin]

I was just talking to a supplier I use. He had stated that they were implementing an increase in the next week or so. He didn't specify that that was the reason, but one of my co-workers did mention this ship's status and thought there may be a connection.

 

[swall]

With just in time delivery, these kind of accidents cause problems we never had before. In the past year, my company has had delivery problems with Cr-Si wire from Japan because of a ship grounding or nearly foundering.

 

[EdStainless]

It turns out that it wasn't 1,000T, it was less than 100T. Still, the supply side of the market is tight. I would expect to see prices come down some, but considering how much they jumped this isn't a big deal.
Watch out for March surcharges on stainless. Either take delivery in Feb. or see if you can wait until May.

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[HeatTreater]

Also negotiations with Inco in Ontario Canada are at a stalemate. As of last Thursday,, nickel is just about $38,050 a tonne (tonne=2,200 pounds). Inco pays for its overhead with the copper and others metals that are a by product of production.

 

[rmw]

If you have any commodity being transported by ship, go visit

http://www.cargolaw.com

. Sleep well.

rmw