The global nickel market may swing into a deficit next year as Indonesia’s ore export ban will constrain production of nickel pig iron, a lower-grade alternative to refined metal, said Macquarie Group Ltd.
Iron ore prices for immediate delivery may fall to below $150 a metric ton in the second half from about $175 now on rising output of the raw material and concern over demand from China, according to Macquarie Group Ltd.
Jim Lennon, the chairman of commodities research at Macquarie Group Ltd., is retiring after 19 years and has been succeeded by Colin Hamilton, according to two people with direct knowledge of the matter.
Jim Lennon, a commodities analyst at Macquarie, comments on Australia’s proposed 40 percent mining tax and steelmakers’ options to cope with rising iron ore prices. He spoke in an interview during a Metal Bulletin iron ore conference in Prague yesterday.
Nickel’s price floor probably isn’t $20,000 a metric ton because nickel pig iron producers in China are lowering their costs, Jim Lennon, global head of commodities research at Macquarie Bank Group Ltd. said. The following comments were from a phone interview on June 6.
Indonesia will probably refrain from fully banning mineral ore exports in 2014 as the move would spur unemployment in the producing regions, said Jim Lennon, commodities consultant to Macquarie Group Ltd.