A Surplus of Nickel Is Likely

Platts reported  BNP Paribas said a sustained nickel surplus is still predicted, but no longer guaranteed.

As quoted in the market news:

It added that a number of factors could undermine the development of a significant surplus.

BNP Paribas notes that research consultancy Brook Hunt estimates that over 10% of nickel production is cash negative when LME nickel prices trend below $18,000 mt.

The bank said that if prices remain rangebound at this level it could trigger significant production cutbacks.

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