IMA projects nickel price to rise to $20,000 per ton

Deputy Chairman of the Indonesia Mining Association (IMA) predicts that nickel price to rise this year, reaching around US$20,000 per ton by year end.

He said that stronger demand led by China and limited supply would drive the price of nickel this year, Kontan reported on Monday. Nickel producers in Indonesia cut down output last year in the wake of the global economic slowdown, affecting global stock. China?s economy, however, has now started to recover, creating demand pressure.

The price of nickel in the first quarter of this year averaged around $17,000 per ton, higher than the $16,000 per ton average in the first quarter of last year.

He said that Indonesia?s move to ban the export of mineral ores starting 2014 would also affect nickel export from Indonesia. The Indonesian Ministry of Energy and Mineral Resources has projected the country?s nickel output to reach 37 million tons this year, compared to last year?s 35 million tons. (*)