LME nickel inventory made a record of 306,828 tons at the time of trade closing on July 8 (= at the time of trade opening on July 9), and updated an all-time high record.

After LME nickel inventory made a record of 305,970 tons at the time of trade closing on June 17, it decreased next day and never surpassed this level thereafter although there was a fluctuation. A large quantity of 1,110 tons was put in the designated warehouse in Johor (Malaysia) on July 8, which was a big movement for the first time in about 4 weeks.

A certain major resource company has recently made clear its forecast that the world's demand and supply balance for nickel will become a tight supply from 2015, which will continue in 2016 and 2017 as well. The background for the above is unless the price of nickel goes up to US$22,000 - US$24,300 per ton, the production from the new project won't get into full swing and the supply shortage arising from the export ban on nickel ore imposed by the Government of Indonesia can't be filled up.

For a reference, LME nickel price surged to US$21,200 on May 13, but dropped back on the next day, and since then, has continued to remain at a level of not exceeding US$20,000.

• [Editor:Juan]