“High prices will incentivise a substantial build out of blast furnace and other smelting capacity in Indonesia,” Goldman analysts Roger Yuan, Max Layton and Jeffrey Currie said in a report. “Demand destruction could also help to balance the global market in 2015 if the ban is not relaxed during the smelter construction period.”
JJN tracks nickel futures through one futures contract. NINI, on the other hand, can track two futures contracts and roll into one of a number of futures contracts with varying expiration dates. Consequently, NINI could produce a less volatile exposure to nickel prices, but while this can limit declines, the ETN’s tracking methodology could diminish upside potential.
iPath Dow Jones-UBS Nickel Total Return Sub-Index ETN
For more information on nickel, visit our nickel category.
Max Chen contributed to this article.