Nickel Price Forecast, January 2017: Nickel Flat Leading Up to Chinese New Year

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It’s been all quiet on the nickel front recently as the metal is essentially even as the Chinese Lunar New Year Holiday approaches.

According to a recent report from the Economic Calendar, nickel prices ended Tuesday slightly higher due to a lower U.S. dollar, which offset the slight decline nickel saw on Monday this week.

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Wrote Leia Toovey for Economic Calendar: “Chinese businesses and markets will close on Jan. 27 and factories will remain closed for at least a week. With business activity at a standstill, demand for base metals from its top consumer will remain muted while there will also be fewer speculators placing their bets. With Chinese buyers absent, nickel is likely to garner the majority of its price momentum from the US dollar.”

Nickel Miners to Boost Exports?

Our own Stuart Burns recently wrote that Indonesian nickel miners might soon be allowed to export up to 5.2 million tons fo low-grade nickel ore a year. Burns wrote:

“The intent seems now to be to allow nickel miners to export providing they dedicate at least 30% of their smelter capacity to processing low-grade ore, defined as below 1.7% nickel. They can then export any excess capacity they have. That said, this move means that up to 70% of Indonesia’s nickel production capacity could potentially be put on the market, which would be equivalent to around 14% of global capacity.”

How will nickel and base metals fare in 2017? You can find a more in-depth copper price forecast and outlook in our brand new Monthly Metal Buying Outlook report. For a short- and long-term buying strategy with specific price thresholds:

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