Nickel price, page-18

"Nickel Surges as Philippine Crackdown Stokes Supply Concern"
July 19 2016 - 4:34PM
Bloomberg News
"The price of nickel extended its gains from the highest close in almost nine months as the new Philippine government delivers on its vow to crack down on the nation's mining industry, shuttering producers in the largest shipper of ore to China in a bid to enforce environmental standards.
The metal, whihc is used to make stainless steel, gained 1.1 percent to $US10,660 a tonne on the London Metal Exchange and traded at $US10,595 Tuesday in Singapore. On Monday, it gained 2.6 percent to $US10,545, the highest close since late October.
The price of nickel has surged amid concerns about Philippine production cuts
Nickel has rallied as investors assess the likely severity of the supply shock in the Philippines amid predictions for a global deficit. A nationwide audit of mines is under way backed by new Environment Secretary Gina Lopez, who's said that she'll close suppliers that don't make the grade. Goldman Sachs Group Inc. has forecast that prices may rally to $US12,000.
"The market is very concerned about the Philippines' news: they are shutting mines gradually," Celia Wang, a researcher at Shanghai-based trading house Grand Flow Resources Co., said by phone from the city. "Bears will definitely exit for the moment and monitor the situation."
Mines are already being closed, in a country which accounts for about one fifth of global mined nickel, according to an estimate from Deutsche BankG. On Monday, the Philippines mines bureau said the operations of Berong Nickel had been suspended. Earlier in the month, the Environment Department halted two operations in Zambales province, north of the capital.
In May - before Lopez was appointed by President Rodrigo Duterte - refined nickel demand exceeded output by 11,300 tons, according to the International Nickel Study Group. The deficit for the first five months was about 21,200 tons, with the market headed for the first annual shortage since 2011.
There will be a global nickel shortage of 110,000 tons this year followed by another deficit in 2017, according to Macquarie Group. "Better demand has led us to revise up our projected deficits for 2016 and 2017, even without factoring in any government-enforced closures in the Philippines," the bank said in a report last week."

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