by Greg Klein | October 23, 2015
What happened to the nickel bull? Chris Berry sees an interesting contrarian case study and a pricing paradox that might indicate a future supply deficit. His latest Zimtu Research report looks at the factors that kept prices down despite a 2014 export ban by Indonesia, then the source of 15% of global supply.
But he considers the current price as not only unsustainable but “sowing the seeds for higher nickel prices in the coming years and, along with it, additional exploration and development.”
His conclusion states, “One would think that those companies brave enough to be developing early-stage nickel deposits at this point in the commodity cycle could fill the gap of lost production in coming years. This is of course all subject to a rebound in the nickel price. This rebound could commence as early as next year…”
Berry’s six-page report shows his usual combination of clarity, detail and insight, as he discusses prospects for one of the “most ubiquitous” metals in our lives.