The Big Question in Metals Is What Happens Next to Nickel
- Hedge funds like Valent say nickel is headed for a plunge
- But inventory levels still point to fears of a supply shortage
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While the fog of the trade war clouds the outlook for most commodities, battle lines are being drawn in the nickel market.
On either side, traders and investors are lining up to bet on two diametrically opposed paths for prices. The catalyst: Indonesia’s surprise move in late August to bring forward a ban on exports of unrefined ore. That’s set up conditions for a supply shortage, which triggered a rush to pull inventory out of warehouses. Freely available stockpiles on the London Metal Exchange are now the lowest in more than 12 years.