BINDURA Nickel Corporation (BNC) says nickel prices are expected to remain volatile in the short-term as dynamics in the global market of the base metal continue to shift.
Over the past five years, the price of nickel has fluctuated between US$7 500 to US$18 500 per tonne.
“In the short-term outlook period, the London Metal Exchange (LME) nickel price will remain vulnerable due to Chinese stockpiling before the Indonesian ore export ban,” BNC said in a trading update recently.
Top nickel ore supplier, Indonesia stopped ore exports from January 1, this year, pushing forward a ban by two years.
BNC said other factors that are expected to push volatility in the market are: “Bearish speculative fund positioning underpinned by minimal support from fundamentals, projected decrease in production by Chinese stainless-steel mills thus lowering demand, and reduced global supply deficit”.
“Projected year-on-year growth in Chinese stainless-steel output slowing down to 3,4 percent in 2020 from the previous projection of 9,4 percent in 2019 on the back of the poor global macroeconomic situation and the ongoing trade tensions between China and the United States of America,” the company
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