ASIAN NICKEL CONF: Bullish outlook for nickel amid Indonesia’s ore export ban, low refined metal stocks

Delegates attending Fastmarkets’ seventh Asian Nickel Conference in Jakarta, Indonesia, last week expressed an overall optimistic view toward nickel prices in the coming year.

Low refined nickel stocks at exchange-listed warehouses and the unlikelihood that huge amounts of nickel ore will be stockpiled at Chinese ports ahead of a ban on exports of the raw material by Indonesia next year were the main reasons for participants’ bullish view. Fastmarkets analysts forecast an average London Metal Exchange nickel cash price of $16,375 per tonne in 2020, an increase of 20.4% from a forecast average price of $13,603 per tonne this year. “Global nickel inventories have declined a lot since the start of 2019 and market participants hold different views on the steady decline seen in both LME and Shanghai Futures Exchange stock levels - whether it’s mainly consumption-driven or is simply stocks being moved away to ‘shadow warehouses’,” Andy Farida, commodity...

Published

Violet Li

September 17, 2019

04:52 GMT

Shanghai