But they still need:-
“Giga has cited a long-term incentive price of US$12/lb or $26,500 per tonne for nickel to get larger projects built, with nickel currently worth about $8/lb or $17,660/t.”
There’s a lot of inventory being moved around at the moment. It’s difficult to know where its all really coming from or where its actually going, up one minute down the next. Its not fundamentals driving these changes in inventory that’s for sure.
LME figures today are a good case in point. Live warrants have dropped by over 13,500 tonnes to stand at 69,492 tonnes. That’s the lowest live warrants total in over 6 years.
LME nickel stocks: Cancelled warrants for LME nickel stocks increased by 16,008 tonnes yesterday, pushing up total stocks earmarked for withdrawal to a year high of 87,462 tonnes. Combined with the inventory drawdown over the past few weeks after Indonesia announced bringing forward the export ore ban, LME nickel on-warrant inventory has now dropped to at least a decade low of 69,492 tonnes as on 23 September. The squeeze on physical stocks has pushed the LME nickel cash/3M spread to US$205/t on 20 September, although it has softened to US$125/t since then, but still remains significantly high compared to historical averagesstrong text****
“That’s the lowest live warrants total in over 10 years.”
LME data week from September 23 to September 27
Live Warrants started the week at 83.112 and ended at 56.070, Cancelled Warrants started the week at 71.454 and ended at 102.042 .
Opening Stocks are now at 158.112 +3.546
That’s a bit of a daft article. There’s about 400,000 tonnes of class 1 nickel currently used to make satainless steel that could easily be substituted for NPI. The process of converting class 1 to nickel sulphate is relatively simple and inexpensive.
The article suggess that most nickel sulphide is found in hostile or politically challenging locations, ie. northern Canada and Russia yet these two locations have been producing the majority of the world’s nickel sulphide for decades without any trouble.
Badly written, poorly researched and rather pointless articles IMO.