In 2017, the price of Nickel will increase

MEPS analysts suggest that soon the cost of stainless steel will recover. Such expectations are based on increased costs of steel companies on raw materials. In addition, in some regions, there is a local restriction of supply. Presumably in 2017, the cost of Nickel on the London stock exchange at an average increase of 15%. The comparison is performed with the current year. In particular, MEPS appreciated the August figures for the average value of 304 cold rolled stainless steel. The price of the annual ratio showed a decrease of only 3.6%.

In Asian markets, for two quarters of expected stability. Then assumed a gradual increase, peaking in mid-2017. In the European market the increase in cost of production will be limited by several factors. First, it is over capacity. Secondly, not going anywhere competition with importers. However, the expected rise in costs would lead to increase cost. This trend will be observed from the beginning of 2017. In the summer we can assume a seasonal drop in consumption. In the United States is expected to increase domestic prices. Their growth is based on the tightening of policy on steel products from China. Accordingly, to decrease the volume of deliveries of stainless cold-rolled products. Presumably August the price of cold rolled coil in 2017 compared to August of this year will increase by 6%. However, analysts MEPS are not the only one who promised the strengthening of the value of Nickel.

At the end of August 2016 forecast regarding the increase in cost was made by the representatives of the Jinchuan Group. The Chinese company is the largest producer of Nickel in the country. In its assumptions the result of an increase in cost will be the subsequent investment in the Nickel. This metal soon enough will become an attractive object for investments. As to the rising prices, there are two major influencing factor. One of them is the lack of supply of products in connection with environmental restrictions in the Philippines. The second is the ever-increasing consumption of metal industrial sector. Approximately 50% of the total consumption of Nickel comes from China. The Philippines also owns a 1/5 share of the total production of the metal. Representatives of the Jinchuan Group believe that the deficit will be observed until 2020.