Ni7 Jan 2015 19:23
Costs of nickel-pig iron, a lower-grade alternative to refined metal, are rising and pipeline inventories are low so there is potential for restocking, Gayle Berry, a strategist at Jefferies Group LLC, said in a report today. She forecast a deficit of about 40,000 metric tons after a 45,000-ton surplus in 2014. In the second half of last year, nickel dropped 20 percent on signs of slowing demand in China and Europe.
“The supply condition is a concern, and some buyers are back after the big drop in prices,” Edward Meir, an analyst at INTL FCStone in New York, said in a telephone interview. “While we may not see a big rally, we could definitely see some support at these levels.”
Nickel for delivery in three months rose 1.4 percent to $15,475 a ton at 3:24 p.m. on the London Metal Exchange. Earlier, the price reached $15,567, the highest since Dec. 24. The metal headed for a third straight gain, the longest run since Dec. 4.