Nickel Market Seen by Citi Depleted Faster Than Expected on Ban
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Nickel, the best-performing base metal this year, will extend its rally as the market is headed for a bigger deficit than previously forecast in the wake of Indonesia’s ore export ban, according to Citigroup Inc.
World supply will be in a 3,000 ton shortfall by the end of the year, with the deficit widening to 134,900 tons next year, Edward Morse, global head of commodities at Citigroup, said in a report dated yesterday. The bank previously projected a 30,100-ton surplus for 2014 and 132,200-ton deficit for 2015. Citigroup raised its 2014 average price forecast by almost 12 percent to $18,550 a ton.