“We forecast Europe’s stainless melt production rate to recover in 2020, with growth of 7.5%, or 500 kt, to 7.4 Mt. As coronavirus heightens fear of global recession, nickel prices tumble. “Imports, chiefly from Southeast Asia and China, have taken a steadily increasing share of the European stainless steel market in recent years. Fastmarkets’ analysts forecast an average London Metal Exchange nickel cash price of $16,375 per tonne in 2020, an increase of 20.4% from a forecast average price of $13,603 per tonne this year. In November 2020, the price of one metric ton of nickel stood at some 15,807.73 U.S. dollars. stainless flat products (FPs) – slab and hot rolled coil (HRC) – Delong will “Alternatively, Obsidian may cast billet rather than slab and produce stainless long products (LPs). New Delhi, Dec 9 (PTI) Nickel prices rose 0.4 per cent to Rs 1,234.60 per kg in futures trade on Wednesday, as speculators built fresh positions on rising demand from alloy makers in the spot market. Don’t forget to follow us @INN_Resource for real-time news updates! Some investment opportunities are limited to accredited investors. getting the quantity of nickel that EVs will need by the mid-2020s will remain “However, news of the COVID-19 vaccine and the resulting economic recovery, the introduction of further stimulus measures aimed at ‘green’ industries and concerns about long-term nickel supply could help support prices in 2021,” he said. Global nickel short-term outlook December 2020. Following a very volatile year in 2020, they don’t expect the nickel price to fully recovery until 2022. But the truth of the matter is that this metal is widely used in society today. export ban will mean that, once ore stocks are depleted, Chinese NPI production Although near-term supply and demand forecasts are cut, the long-term outlook remains intact. “Definitive safeguards put in place in 2019 eased that situation but imports still accounted for around 30% of the regional market in 2019. Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. Positive investor sentiment around the use of nickel in electric vehicle (EV) batteries surged, although analysts still expect demand from the battery industry to lag behind steel demand for some time. Nickel prices saw little upside in the first half of 2019, but this changed in the third quarter of the year as the Indonesian government surprised the market by bringing forward its export ban on unprocessed ores from January 2022, as originally scheduled, to January 2020. “It is still early days for the EV precursor segment, but everyone is excited by it because of the strong year-on-year growth potential,” Gardner said. “However, output may decrease from February-March once the company completes its review of the facility … However, in 2021, Woodmac is forecasting that nickel demand will strongly recover by between 9 and 10 percent to reach 2.5 million tonnes. “The substantial growth in European EV sales in H2 in particular has surprised many, helping buoy expectations of nickel demand from the battery industry heading into 2021.”. Experts share their nickel outlook, from supply and demand dynamics to price predictions. As 2021 kicks off, questions remain as to whether nickel’s current price level can be sustained or has been driven purely by speculation. Indonesia is staggering. Nickel price news. The improvement will come on the back of a very poor 2020. will decrease sharply. Andrew Mitchell, Wood Mackenzie Head of Nickel, sees five key themes: “Despite continued investment in new battery plants, weaker demand for NiSO4 tied to last year’s cut in Chinese electric vehicle (EV) subsidies will translate to more discounts in 2020. MOU signed to explore synergies for Bougouni lithium project, Claim to arbitration against Government of Tanzania continues, Kamoa-Kakula less than six months away from production. “Roskill forecasts Chinese production of the battery-grade chemical product from all feedstock types to continue to grow strongly year-on-year over the next decade to meet demand from lithium-ion batteries with increasingly nickel-rich cathode chemistries used in EVs,” Anderson said. “We expect the market to witness another year-on-year drop in NPI supply from China as port and consumer ore stocks decline further and production remains constrained by the levels of imported ore from the Philippines, New Caledonia and other smaller producing regions,” Anderson said. Future nickel production is dominated by Indonesian NPI and a strong ramp up in nickel … average 700 ktpa since mid-2018. It is anticipated that the global nickel consumption will grow at a CAGR of around 11% during 2015-2020. This also ... Indonesia has brought forward its ban on ore exports to 2020, which is seen as long-term price bullish but may be medium-term negative. The LME three-month nickel price made gains during the first two sessions of the week, recovering some of last week's losses. pace of investment in new battery manufacturing facilities. Click on the image below to get your complimentary sample of the 2020 Annual Metals Outlook. demand for nickel chemicals was exaggerated last year and that growth will be Nickel prices surge past US$17,000/t as SHFE nickel stock fall to their lowest level since June 2019. shops in Indonesia Tsingshan Indonesia and Delong Obsidian. This growing demand from stainless steel producers, a trend that is likely to continue in the near future as well, will drive the buoyant global nickel market. For Miller, ultimately current nickel prices do not reflect the market fundamentals. Nickel market numbers It should be said that today the problem barely registers as a price lever. “While commissioning will give rise to an initial production of at least a few thousand tonnes, whether it remains operational for longer is open to debate – putting that 300 kt of new production at risk. “However, output may decrease from February-March once the company completes its review of the facility which has been losing, on average, US$9 million a month. You can find out more and withdraw your consent at any time. Prices for the base metal were up almost 30 percent year-to-date as of the end of December, with one of the main drivers being Indonesia’s export ban news. For his part, Miller said nickel demand from the battery sector has continued to grow this year, albeit at a slower pace than was originally anticipated in Benchmark Mineral Intelligence’s pre-COVID-19 forecasts. The financial community is becoming more astute in asking, ‘Which type of nickel product do you intend to make and where do you think you can sell it?,'” he said. Stay safe and have a great day! Miller agreed, saying that from a battery perspective, alongside the ramp up of new projects, ensuring the ESG credentials of new supply coming to market in 2021 and beyond is one of the biggest challenges the industry faces. The new duties would prevent this happening, leaving a big question mark over whether Tsingshan will be able to increase output at all,” concludes Mitchell. across three industrial parks. The news, which broke around August 7, sent nickel … Its just about everywhere. Nickel increased 796 USD/MT or 4.81% since the beginning of 2021, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. ... up from $102 million in Q2 2020. It boomed in the 1960s and 1970s, but prices have dropped considerably since then. Read on for their predictions. “For now, we maintain our outlook for 22 kt nickel production at Vale’s VNC HPAL (high pressure acid leach) operation in New Caledonia in 2020. Cookie Policy. stainless exports could fall by a further 250 kt, having already declined by an Historically, Nickel reached an all time high of 54050 in May of 2007. struggle to arrange offtake for any of its output. Although the global 31 Dec 2020: 16,607.00: 16,607.00: 16,607.00-231.00-1.37 %: 30 Dec 2020: 16,838.00: 16,838.00: 16,838.00-232.00-1.36 %: 29 Dec 2020: 17,070.00: 17,070.00: 17,070.00 According to our latest research report “Global Nickel Market Outlook 2020”, nickel consumption is dominated by the stainless steel sector. Nickel prices grew by 5.7 percent in February continuing a medium-term growth. Despite all the opportunities on the horizon for the nickel market, there are some challenges the industry could face as 2021 begins. Market Drivers 6. “Greater challenges may await the three new HPAL plants in Indonesia that are scheduled to enter production in 2021,” says Mitchell. Average price of LME traded cash nickel so far this month - $7.87/lb; LME nickel chart - here / Euro/US Dollar chart - here Reports For Norton, the coming nickel deficit will influence the metal’s story in 2020. “I think ultimately securing financing remains the biggest challenge for juniors,” he said. hot rolled stainless imported from China, Taiwan and Indonesia in 2020, thereby Conversion Nickel Price Price; 1 Ton = 1,000 Kilograms Nickel Price Per 1 Kilogram 16.54 USD The impact will extend well into 2020. Click here to read the previous nickel outlook. Stay safe and have a great day! The ratification of anti-dumping duties on imported stainless HRC from China, Taiwan and Indonesia would aid this rebound. … “Unfortunately, LPs are also not exempt from China’s duties on Indonesian imports. This will place more pressure on the country’s Obsidian may struggle Experts share their nickel outlook, from supply and demand dynamics to price predictions. However, if nickel supply becomes constrained, consumers are going to pay the price. restricted to only 3-4% in 2020.”. becomes tighter. in China is 526 kt, with monthly production levels expected to be sustained at “This materialized despite the impact of the COVID-19 pandemic,” Anderson said. Global Nickel Based Alloys Tube Market 2020 (status and outlook) Latest Report on Nickel Based Alloys Tube Market Forecast 2026- Covid-19 Update. a challenge. 3 Min Read. The knives may be out for the country’s nascent stainless industry but the staggering potential for expansion in NPI may reduce the impact of the nickel ore export ban to a minor inconvenience. 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There are now two stainless steel melt “EV sales were reduced by half, China’s EV sales target of 1.5 million units was derailed and this cut demand for batteries and, therefore, precursor materials, including NiSO4. As of December 29, the nickel spot price was USD 7.69, up from USD 7.28 last month. This, in combination with weakening demand, led to European stainless melt output decreasing by 8% in 2019. Wood Mackenzie does not expect the ramp up to 3 Mtpa to be viable in 2020. Your trusted source for investing success. They also credited any short-term, temporary price rises mostly to declining dollar values. Chart via the London Metal Exchange. “It is therefore likely that prices in 2021 will be below current spot prices, on average,” Masson said. At least for several months, a supply surplus may still outstrip recovering demand. 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