Shanghai Metals Market reported that although the nickel market is “fundamentally challenged,” any decision from Indonesia regarding the suspension of exports of unprocessed raw material should prove supportive.
As quoted in the market news:
‘This could have two outcomes for the nickel market, either of which would be supportive for nickel prices,’ the bank added.
‘If nickel ore exports are made more difficult, Chinese nickel pig iron furnaces could cut production, which would ultimately result in higher imports of refined nickel and ferronickel. Meanwhile, if material continues to flow out of Indonesia, higher-cost producers in World ex-China could shutter mines, thereby helping to remove some of the supply overhang,’ Bank of America Merrill Lynch concluded.