Norilsk Nickel Forecasts Higher 2014 Prices; Daily Index Doesn't Agree

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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?

See for yourself in the latest Monthly MMI® Report – covering the Stainless/Nickel markets

Proof is in the pudding – our daily nickel and stainless steel price index backs this up:

today's metal prices - MetalMiner IndXThe Indian nickel cash price saw a 1.6 percent increase on Tuesday, June 25, making it the biggest mover for the day. But that was the only bright spot.

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.

FREE Download: The latest Monthly MMI® Report – covering the Stainless/Nickel markets!