Nickel prices trade at decade high; gain 9% this year
Nickel prices are trading at a decade high and have gained 9 percent already for the current year on the back of strong demand expectations and announcements of new nickel mining projects. Shanghai Nickel is near a record high. According to the IEA, Nickel demand will grow 19-fold by 2040. Nickel use in battery storage/EV will jump 20 percent by 2025. Tesla has signed a nickel purchase deal of 75,000 tonnes with Talon.
The nickel demand of the EV battery sector is expected to accelerate, with experts predicting it to be near 35 percent of the total demand by the end of the decade.
Here are the key factors for rise in nickel prices
– Announcements of new nickel mining projects
-China rate cut, expectation of more stimulus
2020 : +18.6%
2019 : +31.55%
2018 : -16.5%
2017 : +30.5%