Nickel Market Faces Supply Shock as UBS Sees Risks Next Year
- ‘About 10 percent is a big cut in any commodity market’: UBS
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London Metal Exchange Index Enters Bull Market
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About a tenth of the world’s nickel supply is at risk after the Philippines widened a crackdown on miners, raising the chances of prices rallying by another 25 percent through 2017, according to UBS Group AG, which had already billed the metal as one of its favored commodities.
The market is reeling after the Philippine government threatened to close another 14 mines last week, pending responses to an environmental audit. Of 41 operations reviewed -- the majority of them nickel-producing -- about three-quarters have been halted or told they need to come up to scratch.