Despite nickel's 33% price rally so far this year, Russia's Norilsk believes prices are still too low for many producers to be profitable

Despite nickel's 33% price rally so far this year, Russia's Norilsk believes prices are still too low for many producers to be profitable. The nickel price is still quite low fundamentally, as it is below production costs at a number of mines worldwide, including our facilities in Australia, Anton Berlin, head of strategic marketing at Norilsk, said in an interview with Bloomber. Next year the market may turn into a deficit given that the Indonesian ban is still in place. The price should go up in order for the idled producers to restart working as there is demand for the metal. Nickel should trade at $20,000 to $25,000 a ton in order for loss-making producers to break even, according to Norilsk. Demand is growing mostly in Asia, while the American market is showing a moderate expansion and Europe is between stagnation and moderate growth, Berlin said.