LME nickel inventory made a record of 463,800 tons at the time of trade closing on May 22 (= at the time of trade opening on May 26), which updated an all-time high. The inflow volume into the designated warehouses in Singapore has increased since late May.

On May 26 when Early May Bank Holidays were over, LME nickel inventory increased by 8,010 tons and exceeded 460,000 tons. The inventory just exceeded 450,000 tons on May 22 as the preceding business day, and the price was down in the trading in the first session due to this increasing trend.

In the end of 2014, many of resource analysts predicted the demand and supply balance for nickel would turn to a state of tight supply during 2015, but in the period from January to March in 2015, this prediction was changed to a state of excess supply for about 20,000 tons or so throughout the year. This is because the world production volume of stainless steel is lower than originally expected and therefore there is an analysis that the nickel consumption also will be lower than expected, and the decrease in China's nickel pig iron production is smaller than anticipated as well.

In the market where the atmosphere of a state of excess supply always exists, the products whose sales were accelerated within last week when the nickel price showed a downward trend and the impact from liquidation of longs in the end of the week seem to come up to the surface in the shape of sharp increase in the inflow volume into the designated warehouses.

At the time of trade closing on May 22, the inventory increased by 8,010 tons in a total of 6,852 tons in Singapore, 984 tons in Rotterdam and 174 tons in Johor.

• [Editor:Juan]