The nickel market has undergone something of a boom and bust over the last few years. In May 2007 nickel prices were at an all-time high, clocking in at $50,800 per tonne, largely thanks to stores of the metal registered at the LME being at a low point. But, that’s no longer the case—fast forward a few years and it seems that supply is outstripping demand.
More nickel is being produced than is actually required with reserves only ever seeming to be on the rise, and that’s had a stark impact on the price of this commodity. Last year the value of nickel dropped dramatically—the metal lost a staggering 30.4% of its value between February and August before finally reaching a two-year low of $15,190 per tonne, with no other base metal falling so far or so fast.
This doesn’t mean that all is lost, however. Prices have made something of a comeback over the last few months with the commodity making it up to $17,000 per tonne in December, and although there’s expected to still be a surplus in 2013 some market analysts are predicting a slow but steady rise in value.
Of course, the only way to be sure of that and to stay on top of these fluctuations is to speak to the experts themselves. Getting accurate, up-to-date price forecasts can give you the knowledge you need to make the right business decisions, seeing you through the boom and bust era without any costly drawbacks.