Goldman Sees Nickel Rally Following a Drop in Pig Iron Output
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Nickel prices in London may advance on slower stockpile builds as output of a lower-grade alternative drops in the coming months, according to Goldman Sachs Group Inc.
Nickel pig iron output cuts are likely at current prices and could balance the market, the bank’s analysts including Max Layton and Roger Yuan wrote in a report dated yesterday. The Philippine monsoon season will cut supply, boosting ore prices and the production cost of nickel pig iron, or NPI, through February, according to the analysts.