Chart of the week: Nickel is due an upturn

Nickel prices have eclipsed $17,000 a tonne for the first time since March 2012, says Neil Hume in the Financial Times. Speculators have pushed up the price of the stainless steel component following an Indonesian export ban.

Previously the market was oversupplied but, according to Macquarie, the Indonesian ban couldmean the nickel market has a deficit of 134,000 tonnes in 2015, 106,000 tonnes in 2016 and 77,000 tonnes in 2017.

Article continues below

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

The Australian investment bank reckons prices could hit $30,000-$50,000 a tonne in 2016. If you're looking for a way to play nickel, Jonathan Allum of SMBC Nikko notes that Japanese metals group Pacific Metals (JP: 5541) tends to do well when the nickel price rises.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.