Nickel Price Forecast, November 2016: US Election Impacts Prices

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Carsten Reisinger/Adobe Stock

Carsten Reisinger/Adobe Stock.

This week, support from rising alloy-maker demand in domestic spot markets and a supporting trend overseas combined to move nickel prices up slightly.

Just another notch in the 2016 trend of industrial metal prices growing, nickel prices have climbed roughly 45% since the start of the year, according to a report earlier this month from The Wall Street Journal.

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To begin November, three-month nickel prices on the London Metal Exchange were up 4.5% with copper futures climbing 1.5% at the same time.

Prior to the election earlier this month, rumors were swirling that the Federal Bureau of Investigation had new evidence that could warrant charges against U.S. presidential candidate Hillary Clinton. This development contributed to the risk appetite in nickel, copper and other base metals.

“Metals including copper and aluminum are likely to take their immediate price direction from the U.S. elections,” Helen Lau, analyst with Argonaut Research, told the WSJ. “The controversy over Clinton’s email use seems to have closed.”

Buying Nickel and Other Industrial Metals in a Bull Market

Now that the presidential election has been decided, we look ahead to 2017 and where this seemingly bull market will take us. Our own Raul de Frutos wrote recently that nickel saw two price consolidations in 2016 with both combining with the bullish sentiment across all industrial metals. In addition, a bullish narrative of supply shortfall in the nickel industry signaled an ideal time to purchase large quantities of the metal.

How will nickel and base metals fare for the remainder of 2016 and into 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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