Morgan Stanley Sees Nickel Oversupply, Goldman Sees Rally
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The nickel market remains oversupplied and prices will hover near current levels, according to a report by Morgan Stanley today that contrasts with forecasts from Citigroup Inc. and Goldman Sachs Group Inc. for a rally.
Prices for the metal used in stainless steel production will stay close to current spot levels in 2014 unless there is both a sustained pick-up in global steel demand and more supply-side production discipline, Morgan Stanley analysts Peter Richardson and Joel Crane wrote in a report today. This compares with Goldman raising its 12-month price target to $16,000 per metric ton from $15,000 yesterday.