Against the backdrop of the nickel export ban in Indonesia, MetalMiner’s monthly Stainless MMI® dropped to a value of 78 in December, a decrease of 4.9 percent from 82 in November.
Nickel prices fell significantly, after rising the previous month, driving the stainless index down. The 3-month price of nickel dropped 7.5 percent on the LME, while transactional prices of Chinese and Indian primary nickel fell by 6.5 and 7 percent respectively.
There are several analysts out there who feel nickel prices will turn around once the Indonesians kick their export ban into effect in January 2014. Current evidence points to the ban remaining intact, which could make the global nickel oversupply situation do a one-eighty.
However, nickel prices remain in a long-term downtrend since prices topped in the first quarter of 2011. What’s our nickel outlook? Let’s base it on a more technical analysis, shall we?