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  • Supply Shortage And Strong Demand For Stainless Steel Industry Supported Nickel Price In 2019
    Sep 14, 2018

    Jakarta September 12, the world's leading nickel supplier, Indonesia's output growth slowed, coupled with growing demand from the stainless steel industry, the global nickel market supply gap will continue to expand, and is expected to support price increases in 2019.

    Jim Lennon, senior commodity consultant at Macquarie Capita, told the Sixth Asian Nickel Conference in Jakarta in the Metals Bulletin that nickel prices are expected to climb to $16,000 by the end of 2018 and to $18,000 a year later. Nickel prices hit the lowest level since last December.

    In the first half of 2018, the demand from the stainless steel industry exceeded 9%, supporting the price of nickel, Lennon said.

    He said that with the intensifying trade war between China and the United States, investors' worries about the global economic growth are coming up.

    He predicted that China would ease its credit policy and take steps to stimulate economic growth, which would support steel demand; but nickel production will remain slow for the rest of 2018.

    Lennon said supply disruptions to Eramet's New Caledonia mine, production restrictions in China to combat pollution and slowing production growth in Indonesia could also support a rebound in nickel prices this year.

    "Inventory is down, so prices should go up. "He said.

    Alex khodov, an analyst at Norilsk Nicke in Russia, said the global nickel market had a shortfall of 90,000 tonnes in the first eight months of 2018 and was expected to hit 120,000 tonnes by the end of the year.

    Linda zhang, a metals analyst at Wood Mackenzie, also predicts that nickel prices will rise to $14,400 a tonne this year and $16,670 in 2019; the nickel market will be short of 73,000 tonnes this year and 63,000 tonnes in 2019.

    Nickel prices rebounded from an eight-and-a-half-month low on Wednesday, but increased trade disputes between China and the United States and a drop in Chinese steel prices limited the rise in nickel prices.


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