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LME Nickel Stocks

lse:amc

#1669

TDT

I agree, but 12.000 or 13.000 $ ton it is not the ideal price to incentive to build new mines, or new investments.


#1670

#1671

“…12.000 or 13.000 $ ton it is not the ideal price to incentive to build new mines…”

The longer the price stays low the bigger the boomerang effect when it eventually does take off. That may be what we are seeing now. The price has been too low for too long. It has a bit of catching up to do.

TDT :sunglasses:


#1672

Good assessment of where things are at right now IMO.

TDT :sunglasses:


#1673

#1674

https://news.metal.com/newscontent/100951854/market-euphoria-to-prop-up-nickel-in-short-term/


#1675

https://news.metal.com/newscontent/100951816/[market-change]-global-interest-rate-cuts-are-expected-to-boost-metals-nickel-prices-soar-guard-against-the-risk-of-catching-up/


#1676

#1677

#1678

#1679

“Nickel price catches battery, export ban fever. Again”

The file away comments from this article:-

“Roughly speaking NCM 811 batteries for light passenger EVs require more than 50 kilograms of nickel.”

“Andrew Cosgrove, senior mining and metals analyst for Bloomberg Intelligence at a recent conference predicted that nickel demand in batteries could outpace that of stainless steel in absolute terms, adding as much as 900,000 additional tonnes per year by 2030. That compares to current annual nickel production of less than 2.5m tonnes.”

Keep in mind that mainstream analysts are renowned for under estimating and general predict conservatively.

Nuno

Class 1 nickel powder for sulphate production enjoys a large premium over LME prices, but for miners to switch to battery grade material requires huge investments to upgrade refining and processing facilities.

"Class 1 nickel powder for sulphate production enjoys a large premium over LME prices…’

Any idea what that premium is?

TDT :sunglasses:


#1680

From what we have seen here and according to the VALE was about 1,000USD, but I do not remember


#1681

It looks very much like the price of nickel is going into sharpe reverse at the moment. The old “buy the rumor, sell on news” reaction now that the nickel ore ban in 2022 has been confirmed (or at least I think it has).

Lets wait and see where it settles. Anything above $6/lb. by the end of this year IMO is fine.

TDT :sunglasses:


#1682

https://www.adamasintel.com/nickel-deployed-ev-batteries-may-2019-2/


#1683

#1684

https://www.bloomberg.com/news/articles/2019-07-18/indonesian-mining-giant-to-spend-billions-to-avert-metal-imports


#1685

https://www.spglobal.com/en/research-insights/articles/china-commodities-watch-steel-mills-move-house


#1686

https://seekingalpha.com/article/4275982-indonesias-export-ban-update-drives-nickel-price-rise?isDirectRoadblock=true


#1687

It’s one of the reasons I say “Why the nickel rally is not a rally, it is a fair price”


#1688

“Exclusive: China’s Tsingshan roils nickel market with buying spree”

Interesting article. What it’s essentially saying is the current market rally is stainless steel derived. As long as the demand side squeeze is maintained the fall/retrace should be modest. We saw a bit of a pull back today but nothing to be overly concerned about, especially when you consider the rise we’ve seen these past few weeks.

Next week will be interesting.

TDT :sunglasses: