Monday, January 17, 2022

Steam runs out as the GRAPHIC-Nickel rally is provided

Must Read

Buccaneers beat Eagles to advance to NFL divisional round

TAMPA, Fla. - Tom Brady was thrown for 271 yards and two touchdowns on Sunday, helping the...

“Ke, Korean zombies!” – Giga Chikadze is not happy with Chan Sung Jung’s UFC Vegas 46 tweet

Ahead of the UFC Vegas 46 fight card, Giga Chikadze has voiced his opinion that Chan...


* Lack of nickel that can be delivered under a SHFE contract

* Open interest against the background of low stocks

LONDON, Jan. 14 () – The momentum behind the rally, which pushed nickel prices to historic highs, is expected to decline as metal supplies used in electric car batteries and stainless steel production begin to pick up.

Nickel prices hit $ 22,935 a tonne on Friday, the highest level since 2011, and prices on the Shanghai Futures Exchange (SFE) are the highest since the deal was launched in 2015.

Stainless steel accounts for two-thirds of global nickel consumption this year, valued at about three million tonnes. By 2025, the share of electric car batteries is expected to double to 20 percent.

The lack of a nickel cathode produced by the Russian company Norilsk Nickel and which can be supplied under the Shanghai agreement has led to an increase in prices.

Nornickel’s production declined in 2021 due to flooding at two mines in the Arctic after it stopped production for several months.

However, it expects to produce 205-215 thousand tons of nickel this year compared to 190-200 thousand tons last year.

“The short-term shortage of SHFE delivery units and the rise in location detection could coincide with the Chinese New Year,” said Citi analyst Oliver Nugent.

“Open interest on SHFE has increased by 25% this year to 370,000 tonnes … This is happening against a backdrop of tight reserves.”

Nickel reserves in warehouses controlled by SHFE NI-STX-SGH The record drop of 4,455 tonnes recorded in August 2021 has not yet recovered significantly.

Nickel reserves MNISTX-JAMI 97,746 tonnes in LME-approved warehouses have decreased by about 65% since April 2021.

Nearly 54% of the total MNI-BBRI-TOT Bagged briquettes are easily crushed into small particles and dissolved in sulfuric acid, nickel sulfate used for batteries.

Concerns about shortages in the LME market created a huge premium for cash during the three-month contract, which was $ 241 per ton, the highest level since April 2009.

Macquarie analyst Jim Lennon said, “Nickel’s near-term price is at risk.”

“However, given strong purchases by manufacturers of electric car batteries, which are likely to be disappointing due to weak prices and supply growth, the likelihood of a major decline is less likely.”

New nickel reserves that could be used to produce chemicals for batteries stem from projects to convert nickel cast iron into a matte and high-pressure acid solution.

Macquarie’s Lennon expects these projects to add 100,000 tonnes of nickel to supply this year.

Interview by Pratima Desai; Additional report by Anastasia Lyrchikova; Edited by Kirsten Donovan

.

- Advertisement -
Latest News

Buccaneers beat Eagles to advance to NFL divisional round

TAMPA, Fla. - Tom Brady was thrown for 271 yards and two touchdowns on Sunday, helping the...

After Unilever offered a shock, competitors are turning their backs on the GSK consumer

GlaxoSmithKline’s consumer hand could lead to a full trade war after...

“Ke, Korean zombies!” – Giga Chikadze is not happy with Chan Sung Jung’s UFC Vegas 46 tweet

Ahead of the UFC Vegas 46 fight card, Giga Chikadze has voiced his opinion that Chan Sung Jung aka “Korean zombie”...

No Way Home’ with $30.6M at box office

NEW YORK - A month later, the No. 1 spot in "Spider-Man: No Way Home" finally hit the box office. The re-launch...

Ryan Fitzpatrick goes shirtless for Bills playoff game

The appearance of a sex toy in Buffalo’s playoff game on Saturday night was not the only surprise. Veteran defender Ryan Fitzpatrick, who spent...
- Advertisement -

More Articles Like This