Nickel likely to hit $20,500/t in Q3 on strong stainless, EV demand - Citi

The London Metal Exchange nickel cash price is likely to hit $20,500 per tonne in the third quarter, with strong stainless steel demand and electric vehicle (EV) restocking driving the uptrend, according to analysts at Citi.

Despite a sell off across base metals on July 19, Citi Metals Strategist Oliver Nugent told Fastmarkets that nickel fundamentals remain strong for Q3 and that he expects the price to rise further. The LME three-month nickel price traded at $18,545 per tonne during Tuesday’s open, up slightly from $18,462 per tonne on Monday’s close.
“There’s only a few times you really think things are well-placed ahead of you, in nickel’s case I look at the consumption side and it looks ultra strong,” Nugent said. 

Nickel demand from the stainless steel sector is one of the key drivers for the view, Nugent said. On the Shanghai Futures Exchange (SHFE),...

Published

Justin Yang

July 20, 2021

11:37 GMT

London