By the end of 2017, an increase in the price of nickel and stainless steel is projected

In a new report, independent research house Capital Economics predicts that of all industrial metals, the price of nickel has the best growth prospects. Nickel is an important raw material for the production of stainless steel products, such as a circle, square, hexagon, stainless steel angle and sheet metal.

Capital Economics sees nickel price rise to $ 11,500 per tonne by the end of the year (that's 20% higher than today's price), with further upside potential in 2018. The nickel price will inevitably affect the cost of finished stainless products, including valves, pipes, containers, etc.

Nickel fell to a 13-year low of $ 7,725 a tonne ($ 3.50 a pound) in February last year, then surged to more than $ 11,700 by mid-November, but fell back nearly 20% and traded at a six-month low of end of the week.

Nickel rose in 2016, mainly due to declines in mines in the Philippines, which have become the main supplier in China after the ban on ore exports from Indonesia since 2014.

The market rocked this month when Indonesia abruptly announced the lifting of a ban, allowing exports of up to 5.2 million tonnes of nickel ore this year.

Capital Economics, based in London, adds that "it is still too early to say that a partial lifting of Indonesia's ban on ore exports would mean an increase in global supplies."

The fact is that supplies from the Philippines may be limited. The country is undergoing a mining audit on the orders of President Duterte and the final results are expected this week. For non-compliance with stricter environmental regulations, 11 mines have already been closed and another 20 are under threat. Capital Economics says it could eventually shut down 50% of the country's mining capacity.

However, there are other sources of supply, notably from New Caledonia. In late December, the New Caledonian government approved applications from nickel miners for additional exports of more than 2 million tonnes of ore to China.