The London Metal Exchange was the source of this weakening trend with sluggish demand attributed to alloy makers in the domestic spot market, according to a report from The Economic Times.
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Nickel wasn’t alone in its LME downward trend as most industrial metals retreated on the heels of commentary from the Federal Reserve, which fueled speculation that U.S. borrowing costs will rise in the coming year.
Nickel’s Price Rally
For the long term, nickel’s price rally could be something to get used to with Jinchuan Group, China’s biggest producer of the metal, encouraging investors to bet on it, moving forward.
According to a report from Bloomberg, China consumes about half of the world’s nickel supply and the Philippines products about a fifth of it. Jinchuan Chairman Yang Zhiqiang wrote in a note on the company’s website that a combination of tightening global supplies due to a mining restriction in the Philippines, along with rising demand from the stainless industry in China, will continue to push nickel prices higher.
“Nickel’s advance is just the beginning of a long bull run, with current prices still around multi-year lows, making the metal a promising investment.”
This, even after nickel prices climbed 35% from the lows seen in February this year, the news source stated.
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