Capital Market Highlights: Nickel

After dropping to a record low around $3.40 per pound in February 2016, nickel has rebounded and is up over 15% at $4.54 per pound at the end of year. Consumption for nickel, linked to steel demand, may rise in the medium term as the US plans to boost infrastructure spending. Increasing demand, lower profitability and supply disruptions has helped boost prices to around $5.00 per pound by December. Nickel prices may continue to find support as global supply is curbed from lower production in China and Russia, mine closures in the Philippines on environment concerns, and export ban on unprocessed nickel ore in Indonesia.