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The catalysts for the recent surge in nickel prices include the Indonesian ban on unprocessed exports and possible further sanctions against Russia. However these factors are only part of the reason why nickel stockpiles are declining rapidly and major customers such as China are getting edgy. Simply put demand is exceeding supply and the pressures seem certain to continue, barring a major world recession.

All this is grist to the mill for some metal bulls, however there are highly credible analysts and industry experts who maintain we are in the early stages of an upward cycle for this essential commodity.

1. Russian based Norilsk Nickel, the world’s largest producer, has stated demand will continue to outstrip supply.
2. Macquarie Group has forecast supply shortages are likely to continue this side of 2019.
3. Goldman Sachs believes smelter capacity in Indonesia needs higher prices in order to expand capacity

Read more at:  http://www.fool.com.au/2014/05/23/heres-why-western-areas-and-panoramic-resources-are-proving-a-rich-lode-for-investors/