It was a shocked news to the creditors that Philippines will suspend 20 more mines and most of them are nickel ones. This news is a fundamental boost for the market confidence.
1. Global nickel inventories has shrunk and would continue to shrink greatly if Indonesian ban keeps to be there.
2. Nickel inventories in London Metal Exchange had fallen to a two-year low of 363,216 tons, down 17% from the start of the year.
3. Three-month nickel futures on the LME were trading above $10,400 a ton, up nearly 20% from the beginning of the year.
4. Philippines, which has traditionally accounted for about 20% of worldwide supply, has spurred the inventory draw-down, and will does more.
5. Demand for stainless steel has remained strong in China.
6. Investment funds were net-long some 57,500 futures contracts, each representing 6 tons, or more than triple the level at the beginning of the year.
The only one factor which would have the potency to stop the upward trend of NP is
1. The Indonesian government is seen moving toward relaxing a ban on unprocessed metal ore exports.
2. However it is a concerning matter rather than a sure thing in short term.
3. Hope the ban would be there for a long enough window for MBN to be relisted or sold at its true value!
MBN Price at posting:
8.3¢ Sentiment: Hold Disclosure: Held
