ABC News published an interview with analyst Richard Herring, who explained that he doesn’t see a turnaround in the nickel price happening for at least one or two years.
We’ve had a period now with a response to that very high price that supply has increased and production has increased, and that is now being reflected in the LME warehouses in the UK and also in the US, where we’re seeing a substantial amount of nickel supply sitting in those warehouses and keeping the prices depressed, yes.
The prospect of a turnaround in terms of the price is some way off in my opinion. Maybe at least one, two years, maybe even longer if we see continued supply coming on. But as the supply and demand of economics dictates as supply decreases, more often than not the price will increase, but the demand is still strong, it’s still there, but there is just too much supply.