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 China rate cut and expectations of more stimulus coming in from China has been supportive for metals and nickel seems to be taking in cues too.  Nickel is one of the most widely used minerals for EV batteries. Considering this commodity has climbed to its highest level in a decade as stockpiles decline, it could present some challenges for EV producers.

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

-Increase in demand for lithium-ion batteries
-Global stockpiles dwindle, with LME stock near record low
-Ramp-up of EV production also a key factor
Prices in nickel from 2017 to 2021 are:
2021 : +26.4%
2020 : +18.6%
2019 : +31.55%
2018 : -16.5%
2017 : +30.5%

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