Inventories May Curb Nickel Price Rise

The Financial Post reported that although nickel prices continue to rise quickly, there is some uncertainty about where they will go in the longer term. That’s partially because “skeptics say that the world is still awash in nickel supply, with large new mines entering production in recent years and relatively high inventories.”

As quoted in the market news:

Bart Melek, head of commodity strategy at TD Securities, said he expects a surplus of 70,000 tonnes in the nickel market in 2014, which follows even bigger surpluses in the prior two years. While he expects the market to sink into deficit next year, he is not remotely concerned about supply shortages.

‘There is concern the market may be in a tight the next while,’ he said. ‘Judging by all the inventories built over the last few years, we really don’t think this will be a huge issue in the next few months.’

Click here to read the full Financial Post article.