NICKEL PRICE SURGE: MAIN CAUSES AND FORECAST

Even though nickel price has always been unpredictable, lately it has skyrocketed by 70% since January 2019, bringing this metal to its highest price level since 2014. In this way, nickel outclassed the performance of all other raw materials. This trend clearly shows that nickel, compared to all other industrial metals, hasn’t been affected neither by the trade tensions between China and USA nor by expected economic slowdown.

This increase may be due to different factors, among which are:

  • The introduction of the mineral ores export ban by Indonesia, the world’s top producer of nickel. The export ban was brought forward to December 2019 with respect to the scheduled start in 2022.
  • The speculation and significant decrease in LME stock 

Nickel is mostly used in stainless steel sector to date (constituting 70% of nickel demand), but its use is expected to rise in the medium and long term in the electric battery field

Therefore the demand for nickel in the electric battery field could probably increase up to 20% of the total demand by 2030, compared to the current 4%. It should be noticed that such growth forecast is in turn raising speculation on nickel itself. 

Thus, we are looking forward to the next edition of Scenari & Tendenze, hosted by AIB, which will provide us with further details on nickel price trends.

Source: Bellomo, Sissi. “Nickel col turbo: +70% da gennaio per il metallo di acciaio inox (e batterie).” Il Sole 24Ore [Milano, IT]. 31 August 2019. <https://www.ilsole24ore.com/art/nickel-col-turbo-70percento-gennaio-il-metallo-acciaio-inox-e-batterie-ACNMJ8g?fromSearch>, [30.09.2019]

 

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