MELBOURNE: Morgan Stanley slashed its nickel price forecasts for the second half of the year on Tuesday as demand from stainless steel producers is undermined by a deteriorating outlook for global growth.
The bank cut its third quarter 2015 nickel price forecast by 12 pct to $13,228 a tonne; and its fourth quarter outlook by 10 pct to $13,448 a tonne.
Nickel was particularly hard hit among commodities because 70 percent of all primary nickel goes into a single sector - stainless steel - where producers respond to any signs of a global growth slowdown by aggressively selling down stocks, Morgan Stanley said.
The bank also cut its platinum and hard coking coal forecasts, and raised its aluminium forecast for the fourth quarter.
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