Citigroup Raises 2014 Nickel Price Forecast to $17,000 per MT

Bloomberg reported that yesterday, Citigroup Inc. (NYSE:C) raised its 2014 nickel price forecast from $16,375 to $17,000 per metric ton (MT) due to its belief that “the Indonesian export ban is essentially being mispriced.”

Indonesia still plans to move forward with that ban in 2014.

As quoted in the market news:

‘If we look at the existing law, yes by 2014 we are sure to implement this, but we also consider the effect and discuss it with parliament, how to deal with this,’ said Bambang Adi, deputy to the coordinating minister for economic affairs. Dede Suhendra, director of mining at the Energy and Mineral Resources Ministry, told the gathering: ‘We have to appreciate companies that are serious about building smelters.’

Indonesia is seeking to boost the value of commodity sales, and while a blanket ban is mandated by the 2009 Mining Law, the government may exempt companies that are operating or planning to build processing plants. Nickel is this year’s worst base- metal performer on the London Metal Exchange amid record stockpiles. Citigroup Inc. raised its nickel forecast yesterday, saying the proposed curbs are being mispriced by the market.

Click here to read the full Bloomberg report.