Nickel prices hit 2011 high on low inventories24 Jan 2022 06:52
European Markets
Nickel prices hit 2011 high on low inventories
By Zandi Shabal
Summary
Potential sanctions on Russia spark supply worries -traders
Long-term electric vehicle demand underpins nickel prices
LONDON, Jan 20 (Reuters) - Low inventories propelled prices for nickel to their highest since 2011 on Thursday, with future demand expected to rocket thanks to higher electric vehicle battery consumption.
Benchmark three-month nickel on the London Metal Exchange (LME) climbed 1.8% to $23,565 per tonne by 1721 GMT, after touching their highest since August 2011 at $24,435.
The most-traded February nickel contract on the Shanghai Futures Exchange hit a record high of 176,280 yuan ($27,796.52) a tonne.
"The nickel price rally is likely to have been boosted by robust demand prospects and supply concerns," said Commerzbank analyst Daniel Briesemann.
Nickel, the majority of which goes into stainless steel, is betting on higher demand from its use in batteries that power electric vehicles due to its high energy density properties.
INVENTORIES: Nickel stocks in LME-registered warehouses were at their lowest since 2019 at 94,830 tonnes compared to 264,606 tonnes in April 2021.
In ShFE-monitored warehouses, stocks were near record lows touched in August at 4,711 tonnes.
https://www.reuters.com/markets/europe/shanghai-nickel-scales-record-high-supply-crunch-2022-01-20/