EconomySupply deficit pushes nickel prices to high since 2011

Supply deficit pushes nickel prices to high since 2011

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Lima, January 14, 2022Updated on 01/14/2022 08:19 am

Nickel prices hit their highest since 2011 on Friday as shortfalls in supply are reducing stocks and investors expect increased demand for electric vehicles as copper slipped.

At 11:23 GMT, benchmark nickel on the London Metal Exchange (LME) was up 2.3% to $ 22,695 a ton, after peaking at $ 23,935.

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Nickel is heading for its biggest weekly gain since August 2019, up nearly 10%. Prices have doubled since March 2020, but are a far cry from the all-time high of $ 51,800 reached in 2007.

Metal is used mostly to make stainless steel. Batteries account for 5% of demand, but could rise to 30% by 2040, according to Nitesh Shah, an analyst at WisdomTree.

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“There is a wide awareness of how important nickel is in the energy transition. It is very very difficult to imagine how the supply of class 1 nickel (used for batteries) will keep up with the demand ”, He said.

“We are very optimistic. The $ 25,000 price tag is not going to stop. We can go much higher than that in the next decade “added.

In other base metals, copper on the LME fell 0.2% to US $ 9,943.50 a ton, accumulating a 3% rise for the week, its biggest weekly advance since October.

Aluminum improved 0.8% to US $ 2,975 a ton; zinc advanced 0.4%, to US $ 3,576; lead added 0.8%, to US $ 2,377.50; and tin was up 0.6%, at $ 40,750.

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