Nickel value hit highest in a month with inventories near file lows

[Click here for an interactive chart of nickel prices]

Three-month nickel on the London Steel Alternate was up 0.9% at $20,915 a tonne, as of 0305 GMT, a soar of greater than 15% since final January.

Nickel prices LME

“Nickel costs are anticipated to stay robust within the short-term amid low inventories and destocking expectations, however growing capability from Indonesia will curb additional enhance within the medium- to long-term,” analysts with Jinrui Futures wrote in a observe.

With chrome steel producers stepping up upkeep within the first quarter, nickel demand might weaken from the earlier quarter, in accordance with the analyst.

About 70% of the world’s nickel manufacturing is consumed by the chrome steel sector, whereas batteries take up a modest 5%.

Refined nickel inventories in ShFE warehouses had been final at 4,859 tonnes, near a file low of 4,455 tonnes hit in August 2021.

S&P International Market Intelligence forecasts international major nickel consumption to rebound year-on-year as a consequence of chrome steel capability expansions in China and Indonesia.

“Demand exterior China is predicted to be the primary driver of worldwide development in quantity phrases in 2022 and international consumption is forecasted to rise at a compound annual development fee of about 7% between 2020 and 2025,” mentioned S&P. 

“The battery sector’s nickel demand can also be anticipated to speed up considerably, with many predicting it to close 35% of whole demand by the tip of the last decade.”

(With information from Reuters)

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