Nickel’s price movement remains subdued, continuing its flat performance from the first quarter into April while the market awaits fresh drivers. Overall; however, the tone remains positive amid reduced supplies on the back of Indonesia’s mining bans while demand is holding steady in the world’s top two consumers: China and the United States.
While the sentiment that demand could cool later in the year as China’s infrastructure development slows down, this Tuesday The two biggest nickel miners in the Philippines, Nickel Asia Corp. and Global Ferronickel Holdings Inc. said prices for the metal would be robust this year due to growing demand from China.
The optimism stems from strong stainless steel demand in China, according to Global Ferronickel President Dante Bravo. While demand for steel could retreat, there are better expectations for stainless steel demand as demand for automobiles are expected to remain strong. Stainless steel is widely used in car exhaust systems and also other auto parts. As emerging economies such as China see an increase in wealth, demand for cars also increases.