Insufficient global supply, nickel prices have risen sharply

Addtime:2014-05-30 13:08:00

        As a result of the decline in nickel mineral supply, nickel prices have risen sharply by 1.9% on Friday in local time in London, setting a highest record of nearly 14 months.

        At the end of the open outcry transaction on the day, the London Metal Exchange (LME) three-month nickel has risen by 1.9% to $17,390 per ton. Commerzbank analysts indicated that the most important factor leading to the rise in nickel prices is Indonesia's export ban on unprocessed ore that was introduced earlier this year, which has exacerbated the current shortage of nickel in the market.

        Since the beginning of this year, the cumulative increase in nickel has been about 23%. The factors driving the rise in nickel prices include the ban on ore exports in Indonesia and the tension between Russia and Ukraine. Indonesia is one of the world's largest exporters of quality ore, while Russia's Norilsk Nickel Metallurgy Co., Ltd. is the world's largest nickel producer, with Russia accounting for 12% of global nickel supply last year.

       Although China has begun to hoard nickel before the ban on ore exports in Indonesia, China's strong demand for nickel and the diminishing import have pushed up nickel prices.

       Analysts at Commerzbank indicated that Indonesia's nickel ore exports are very important to the global nickel market, which means that the tight supply of nickel will continue in the next few years, but this does not mean that nickel prices will continue to rise further.

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