Nickel prices were flat yesterday on the LME, following the longest rally since 2010. Goldman Sachs Group said in a report the price is poised climb an additional 12 percent because of limited supplies, according to Bloomberg News.
The price may climb as high as $20,000 a ton, Goldman said in a report dated yesterday. Nickel has gained 28 percent this year.
“We have been bullish on nickel since the start of the year, but prices have risen more quickly than in our base case,” Jeff Currie, an analyst at Goldman Sachs, said in the report. “The price rally predominantly reflects the ongoing Indonesian ore export ban” and “concerns about the potential impact of any sanctions on Russian commodity exports.”
Russia’s Norilsk is the world’s largest producer of the metal.
There was no movement for the nickel spot price on the LME, where it stayed at $17,390 per metric ton. Following a two-day rise on the LME, the 3-month price of nickel flattened at $17,440. The Indian nickel cash price held steady around INR 1,041 ($17.25) per kilogram.
Chinese stainless steel prices closed flat for the day. The price of Chinese ferro-chrome held steady at CNY 8,300 ($1,335) per metric ton. The price of Chinese ferro-moly saw little movement at CNY 145,000 ($23,314) per metric ton.
The price of Chinese 316 stainless coil continues hovering around CNY 26,000 ($4,180) per metric ton for the fifth day in a row. For the fifth consecutive day, the price of Chinese 304 stainless coil held flat at CNY 16,400 ($2,637) per metric ton. For the fifth day in a row, the price of Chinese 316 stainless steel scrap remained essentially flat at CNY 16,100 ($2,589) per metric ton. The price of Chinese 304 stainless steel scrap saw little movement at CNY 16,400 ($2,637) per metric ton. The price of Chinese primary nickel saw little movement on Tuesday at CNY 117,900 ($18,956) per metric ton.