SP Angel19 Apr 2018 13:13
https://www.**********.co.uk/blogs/sp-angel-morning-view-nickel-prices-continue-rise-5-sanction-concerns-battery-demand/
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Nickel US$ 16,150/t vs US$14,230/t yesterday
Nickel clocked its single largest intraday grain since the financial crisis as the stainless steel metal become ensnared in US sanction concerns and rising battery demand. Three-month nickel on the London Metal Exchange surged 17.3% to top $16,690/t as sources report Chinese traders, anxious about aluminum�s rally in the wake of US sanctions on Russia�s UC Rusal, misread an overnight headline reporting the London Metal Exchange delisting Nornickel brands.
Russia�s Nornickel is the world�s second-largest producer, with LME scheduling the delisting of two brands from the company for delivery against its future contract in October last year. ING commodities strategist notes �that decision was taken six months ago, its nothing to do with the sanctions but when you (spark) a technical rally these things run free�. The hype drew �someone buying on cash 2000 lots, that�s the third biggest record for a floor trade of nickel ever�.
The strong gain in nickel price only served to highlight the spreading concerns surrounding Russian mining companies, following sanctions against a firm which owns a 28% stake in Norilsk Nickel. Rusal�s Hong-Kong traded shares having lost more than 60% since the sanctions were announced.
Accelerating demand for battery metals is drawing higher targets of production for BHP Billiton Ltd. The company will boost output from its Australian Nickel West facility to 90,000 tonnes as next-generation lithium-ion batteries focus on nickel-heavy 811 (nickel:manganese:cobalt) compositions. Even improved output from its first phase project will sell with �zero difficulties�, according to asset president. �In all of our visits to China, in February and October last year and again now, it�s clear there has been an acceleration in the pace of change towards high-nickel batteries�.
Nickel West expected to reach its target of selling 90% production to the battery sector by the end of next year, two years ahead of schedule. �When we speak to people, they are keen to buy in large quantities. These are not companies making idle projections; it�s based on real construction of real battery capacity in this country�.
BHP are forecasting a prolonged period of undersupply as the EV shift accelerates, especially considering nearly half of existing nickel output of approx. 2 million tonnes is in a form unsuitable for batteries. While the rapid rise in nickel price draws the metal nearer to incentive price targets for upgrading low-grade laterite ore to high-purity battery composition, it still falls short of the $17,000-$20,000 estimates.
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