The features of 2015 - weak demand, especially in China, high stocks and low nickel prices - are likely to continue through the first half of 2016. Prices staying low until mid-year will be intolerable for many producers and some will be forced to cut or close, perhaps by the end of Q1. With demand moderately better in H2, the prospect of nickel stocks entering a period of steady decline will improve.
Table of contents
Prices decline through 2015; some recovery by end 2016
Production cuts - the magic bullet to a price recovery
Who might close?
Stock movements challenging to interpret – follow the bouncing ball!
Upturn in prices will boost (re-stocking) demand
Tables and charts
This report includes 2 images and tables including:
Nickel production costs across the industry have fallen in the past year
Q4/15: LME nickel from Malaysia and Singapore destined for Taiwan