Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Nickel Forecast, December 2016: Prices Up On Demand

Published 12/29/2016, 12:27 AM
Updated 07/09/2023, 06:31 AM
HG
-
MNKc1
-

Nickel prices edged up higher to end the year in the futures market following speculators widening their positions.

According to a report from the Economic Times, the spot nickel market is seeing a trend of increased demand from alloy makers and other industries that consume the metal. This has covered up short positions from speculators ahead of monthly figures, influencing nickel futures.

A report from Economic Calendar last week found nickel prices hovering near year-long highs. Closing this year on a positive note can be attributed to a tightening supply chain for the metal.

Writes Donald Levit for the news source: “While the supply side adjustments was the major price driver, an improvement in demand also contributed to the rally. While nickel has soared, continued potential for further supply cutbacks have continued to push the metal higher, and last week news of a potential, major shutdown added even more upside impetus to nickel’s rally.”

Nickel Mine Suspensions Also in Play

The Economic Calendar report also announced the closure of the second-largest nickel miner in the Philippines, pending an appeal. This suspension (as it stands) would have a significant impact on the supply and demand balance for today’s nickel market.

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:

by Kyle Fitzsimmons

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.