• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 days Does Toyota Know Something That We Don’t?
  • 5 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 2 days World could get rid of Putin and Russia but nobody is bold enough
  • 19 hours America should go after China but it should be done in a wise way.
  • 5 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 4 days China is using Chinese Names of Cities on their Border with Russia.
  • 5 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 4 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 5 days Putin and Xi Bet on the Global South
  • 5 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 6 days United States LNG Exports Reach Third Place
  • 6 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 9 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine
Venezuela’s Oil Output Could See Moderate Boost

Venezuela’s Oil Output Could See Moderate Boost

The unlikely return of full…

Crew Abandons Cargo Ship After Houthi Attack

Crew Abandons Cargo Ship After Houthi Attack

Attacks on Red Sea shipping…

A Nickel Glut Is Looming

Supply of nickel deliverable to the London Metal Exchange could jump next year by 35% compared to 2022 levels as new plants for nickel processing in China and Indonesia could cause a glut and crash prices, analysts at Macquarie Group say.

The new plants in Asia would process growing volumes of intermediate nickel products into LME-deliverable nickel metal, the strategists wrote in a note quoted by Bloomberg. The pure nickel metal accounts for only 20% of global production of nickel, the other forms of nickel are intermediate products used in the steel and battery manufacturing industries.

The market for nickel is at a “turning point,” Macquarie’s analysts said.

The nickel market has been chaotic over the past year and a half after the huge short squeeze from March 2022, when short sellers raced to cover bearish bets after Russia’s invasion of Ukraine sparked a rally in metals and energy and agricultural commodities.

In early March 2022, nickel prices soared to an astonishing $100,000 per ton—doubling the previous all-time high over the course of one morning—and plunged the London Metal Exchange into an existential crisis.

This year, the physical market has been oversupplied, and prices have slumped to around $20,000 per ton as more supply from Indonesia has hit the market.

Indonesia, the world's biggest nickel miner, has been looking to develop nickel processing industries and ultimately produce batteries for EV manufacturers. At the end of last year, Indonesia said it was considering the idea of forming a cartel to manage the supply of nickel and some other key battery metals, similar to what OPEC does for oil.

“I do see the merit of creating Opec to manage the governance of oil trade to ensure predictability for potential investors and consumers,” Indonesia's Investment Minister Bahlil Lahadalia told the Financial Times in an interview last autumn.  


By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News