Nickel market bullish on EVs, Chinese premiums

The general bullish tone in the nickel market is primarily due to strong physical premiums in China and elsewhere as well as optimism surrounding electric vehicle (EV) battery demand.

Shanghai bonded in-warehouse nickel premiums are at historically high levels, standing at $300-320 per tonne on October 31 after reaching an all-time high of $330-350 per tonne on October 24, according to Metal Bulletin.

“Nickel premiums in China continue to rise, but it’s not just premiums for full-plate cathode that are in demand because these can be delivered against Shanghai Futures Exchange contracts,” Metal Bulletin Research analyst William Adams said on October 31, noting that briquettes are also in demand due to a greater usage by battery manufacturers, with premiums in Rotterdam strong...

Published

Millicent Dent

November 02, 2017

01:11 GMT