Batteries aid nickel value, stainless steel reduces it
Subject Nickel market outlook Significance The nickel price has risen by nearly 50% since the start of 2016 but is still worth only around one fifth of its value a decade ago. Trends in physical inventories in Shanghai and London are diverging. China’s refined production fell by 20% in the first thr...
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| Language: | unknown |
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Emerald
2018
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| Online Access: | http://dx.doi.org/10.1108/oxan-db227798 https://www.emerald.com/insight/content/doi/10.1108/OXAN-DB227798/full/xml https://www.emerald.com/insight/content/doi/10.1108/OXAN-DB227798/full/html |
| Summary: | Subject Nickel market outlook Significance The nickel price has risen by nearly 50% since the start of 2016 but is still worth only around one fifth of its value a decade ago. Trends in physical inventories in Shanghai and London are diverging. China’s refined production fell by 20% in the first three quarters of 2017 and stockpiles in Shanghai halved. In contrast, stock levels at warehouses managed by London Metals Exchange remain higher, covering a quarter of annual demand. Nickel supply and demand are largely in balance but leading commodity traders, including Glencore and Trafigura, warn of an upcoming shortage. Impacts If a substantial shortage develops in the type of nickel crucial for electric vehicles (EVs), prices could rise, raising final EV prices. Environmental regulations will tighten, constraining refining additions; Vale and Norilsk are already unable to continue new projects. Rising prices for European benchmark ferrochrome nickel will encourage stainless steel producers to focus on nickel-heavy product classes. After a nickel receipt forgery at one of Glencore's subsidiaries, authentication procedures will tighten and product delivery will slow. |
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