Russia’s Norilsk Nickel is evidently bullish on their nickel price outlook for next year, but what is it based on?
Not much, apparently.
Via Mining Weekly: “Norilsk, controlled by businessmen Vladimir Potanin and Roman Abramovich, along with aluminium giant Rusal, has budgeted for average 2014 nickel prices at $16 000/t and copper prices at $7 300/t, Evgeny Yakovlev told Interfax in an interview. [This reflects a 16% rise over current 4-year lows.]
Yakovlev did not elaborate why he was expecting a price rise, and his view counters that of some analysts who see nickel falling further as China’s producers of nickel pig iron – a cheap substitute for pure nickel – deploy technological innovations to slash costs.”
Need we mention that nickel, a key component of stainless steel, is the worst performer of the industrial metals complex this year?
Proof is in the pudding – our daily nickel and stainless steel price index backs this up:
The spot price of nickel reached a 30-day low on the LME after decreasing 1.1 percent to $13,625 per metric ton. On the LME, the nickel 3-month price fell 0.8 percent to $13,725 per metric ton.
The price of Chinese primary nickel fell 1.3 percent to a 30-day low on Tuesday. The price of Chinese ferro-chrome saw little movement. The price of Chinese ferro-moly held steady.
Meanwhile, Chinese 304 and 316 stainless coil and scrap prices were unchanged.