Markets research firm Angel Commodities said base metals nickel and aluminium would experience a price hike by the middle of this month due to various positive global cues. Nickel, for instance, would be highly affected by Indonesia’s decision to continue its ban on unprocessed metals.
“ We expect nickel prices to trade higher in September 15 as Indonesia decided to retain its export ban on nickel ore, contrary to media reports suggesting the country may relax curbs to prop up its slowing economy,” a representative from Angel told Commodity Online .
Aluminium, on the other hand, will get a price boost on production upgrade from a giant Russian bauxite producer.
“ We [also] expect aluminium prices to trade higher in September 15 as supply glut concerns will likely get a breather as Russia’s Rusal, the world’s top aluminium producer, is considering capacity cuts of 200,000 tonnes a year this year,” the firm added.
Earlier this year, Rusal executive said that bauxite producers across the globe are forced to either cut production or completely shut operations down due to the losses obtained from weak global prices.
“Chinese smelters expected the price to recover but it’s already [been] more than six months. The price is very low and these producers are suffering from losses, so they have to start shutting down,” said Oleg Mukhamedshin, deputy chief executive of United Rusal Co. in a report by Business Spectator Australia.
Copper will also experience some price problems in the same period due to the growing economic sentiments brought by the recent market rout in China. But refined copper from the country is predicted to expand in the remaining months of this year due to the diminished number of ore and scrap supplies.
Nickel producers, however, are experiencing a different dilemma. Many producers are hesitant to put their products on the market not only because of weak prices, but also of the oversupply in the segment.
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