Wednesday, October 22, 2014

Natixis sees LME Nickel to avg $19,000 a ton in 2015

Natixis sees LME Nickel to avg $19,000 a ton in 2015
LME nickel prices are expected to average $19,000 a ton during next year, said Natixis in its Metals review.
According to Natixis, of all the base metals, there is perhaps the greatest potential uncertainty surrounding the outlook for nickel.
Uncertainty surrounds:--The strength of Chinese demand for nickel,
--The size of unreported nickel (and stainless steel) inventories held in China,
--The likely volume of NPI produced in 2015H1 as a ban on exports of Indonesian ore combines with seasonal weakness in Philippine supplies,
--The pace at which Indonesian nickel ore is likely to return to the global market in the form of 4% NPI.
Natixis's central forecast anticipates a period of deficit during first half of 2015, resulting in an average LME nickel price of around $19,000 a ton over 2015 as a whole, although there is scope for substantial variation around this mean.
By 2016, The firm would expect the market to have settled more closely upon its longer-term equilibrium, hence Natixis forecast for an average price of $17,375/tonne for that year.

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