Ni surges on renewed inventory drawdown
January 31, 2022
The three-month nickel price on the London Metal Exchange (LME) touched its highest in over 10 years as global stocks dropped to new lows at a time of solid demand. Prices have been supported by a rapid draw of stocks led by strong demand. After falling in March-April 2021, the nickel market rebounded strongly in 2021 on a supply-demand dislocation, with disruption at high-grade producers around the world occurring alongside strengthening demand. This was followed by a period where prices had fallen in response to concern of the impact of the Covid-19 Omicron variant, the prospect of increased supply of high-grade nickel and slower demand from China’s stainless steel sector.
(Source: Argus Media)