Nickel Market Needs Production Cuts, Says Macquarie

Mineweb reported that the nickel market will remain in surplus this year unless large production cuts occur, according to Macquarie Commodities Research.

As quoted in the market news:

‘The market is looking to China for further cuts in nickel pig iron production but this is not enough to rebalance the market and cuts outside China may well be a catalyst for a short-covering rally,’ said Macquarie.

To compound the situation, nickel producers have been slow to cut production and there are no reported significant cuts outside of China this year, Macquarie observed. However, production cuts in China are underway.

Click here to read the full Mineweb report.