The Conversation (0)
Bloomberg reported that Barclays plc (NYSE:BCS) believes that in terms of base metals, nickel offers the best opportunity for advances in early 2014. That’s largely due to the ban on mineral ore exports set to come into effect in Indonesia in January.
Bloomberg reported that Barclays plc (NYSE:BCS) believes that in terms of base metals, nickel offers the best opportunity for advances in early 2014. That’s largely due to the ban on mineral ore exports set to come into effect in Indonesia in January.
The firm sees the metal averaging $14,750 per metric ton in the first quarter of the year, $15,000 in the second and third quarters and $15,250 in Q4.
As quoted in the market news:
There’s still a possibility that the full ore ban may not go into effect next month. Indonesia is seeking a solution on mineral exports for 2014, and the government may set purity limits that will allow some minerals to be shipped, Bachrul Chairi, director general of foreign trade at the Trade Ministry, told reporters in Jakarta today.
‘Although there remains some uncertainty over how strictly this ban will be implemented, even if it is not, nickel prices are so low that other producers will almost certainly have to cut instead,’ [analyst Kevin] Norrish wrote. ‘At current price levels, downside is limited since almost 30 percent of global producers are unable to cover cash costs.’