Nickel prices on the Shanghai Futures Exchange rose to a record high, supported by steady demand and low worldwide inventories.On the Shanghai futures exchange, nickel price in October 2021 reached a record of 149,870 CNY (equivalent to 23,197.89 USD) per ton, up 21% up to now.
Three-month nickel prices on the London Metal Exchange hit their highest since July 30 at $19,810 a tonne, up 17% year-to-date.
“Orders for stainless (steel) product extended to year-end, mainly due to strong recovery in demand and distribution disruptions related to COVID-19. Delivery delays have forced consumers have to post orders before demand”.
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Nickel prices in Shanghai hit a record high on strong demand, low inventories. Source Reuters
Stainless steel prices and EV batteries are the top areas of nickel consumption.
Refined nickel inventories in Shanghai warehouses hit a record low of 4,455 tonnes, down 89% from a year earlier. Stocks at ondon warehouses fell to their lowest level since January 2020 to 194,466 tonnes.
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Nickel stocks fall on strong demand from steel and electric vehicles
A nickel trader based in China said that the increase in nickel prices on August 31 was partly due to a short-term pressure on the market.
However, nickel is likely to face pressure for the rest of the year due to requirements to cut stainless steel production in China due to excess supply and energy allocation at the time of macroeconomics. reduce.
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Nickel prices will continue to soar in the next month
A wave of auto cuts due to a shortage of semiconductor chips will likely dampen nickel demand in the fourth quarter and extend into 2022.
Wood Mackenzie forecasts London-traded nickel prices will fall to an average of $18,000 a tonne in the fourth quarter, from $19,050 in July-September, with an average of just over $18,000 for the whole of 2021.
Source: VITIC/Reuters
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