Scotiabank Sees Nickel at US$7.66 per Pound in 2014

CTV News reported that Scotiabank now expects nickel to average US$7.66 per pound this year, higher than its initial prediction of $6.75.

In 2015 and 2016, the firm sees nickel averaging $9 and $10, respectively. Those prices are also above the numbers initially provided by Scotiabank.

As quoted in the market news:

Nickel prices have been rising following the Indonesian ban that was enacted in an attempt to encourage foreign investment in ore processing in the country.

‘While the export ban was announced more than four years ago with an unchanged starting date of January 2014, few market observers, including ourselves, believed that Indonesia would have the resolve to stick with this agenda,’ Scotiabank said in a report Monday.

‘However, after three months and no signs of the ban being eased or watered down, the nickel market has begun to panic, with prices moving up sharply.’

CTV also quotes Mark Selby, interim president and CEO of Royal Nickel Corp. (TSX:RNX), as saying:

Now that the market is realizing this Indonesia ban, as we said, will remain in place, we’re already seeing nickel prices bid up from the lows of $6 a pound. The port inventories have already dropped by six million tonnes in just two months. Outside of China we’re seeing also a number of very strong signs that the global nickel and stainless markets are improving.

Click here to read the full CTV News report.