London nickel prices slipped on Friday, but were still on track for a 7 percent weekly gain on prospects of tighter supply after the Philippines said it would permanently close half its nickel production.
The Philippines ordered the closure of 23 mines, mainly nickel producers, as part of a government campaign to fight environmental degradation by the industry.
"The net impact...is that we should see the nickel market tighten even further in 2017," said ANZ in a report.
"We believe the market to-date has not fully priced in the risk of supply disruptions in the nickel and copper markets. This should see prices well supported in the short term."
London Metal Exchange nickel CMNI3 fell 2.9 pct to $10,095 a tonne in heavy volume of 3,000 lots as Chinese markets reopened after a week-long break.
The mine closures will offset the recent Indonesian decision to lift a ban on exports of nickel and copper ore and concentrates that could add 150,000 tonnes of nickel to the market, ANZ said.
I seriously can not wait until we drill ;-)
cheers Cozza
BUX Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
