#NICKEL *NICKEL HIGHLIGHTS*
O MCX base metals overall sentiments look firm as Pandemic-triggered supply-chain woes have also helped lift prices, but today prices dropped after opening as the market was waiting for the Fed meeting results, and the COVID-19 variants intensified market concerns.
O Nickel prices hit a lifetime high of 1494 rupees per kg due to concerns over supply in key producing countries in short we can say supply concern and soaring demand with logistical bottlenecks supported the prices.
O The US dollar edged lower against a basket of peer currencies on Tuesday as investors awaited the outcome of this week’s two-day Federal Reserve policy meeting for any signals as to when the central bank will begin tapering its asset purchases.
O Commodities from copper, Nickel to steel have posted big gains this year, partly on bets that massive U.S. government spending to rebuild infrastructure will boost demand.
O Support also seen as US nickel premiums are starting to move sharply higher and copper shows signs of stirring. Stocks are in the wrong place as U.S. manufacturing recovers from the pandemic.
O United States nickel briquettes premiums surged by 9.2% this week amid supply tightness and high freight costs while China premiums remain steady under a price gap between buyers and sellers and European premiums are stable.
O Nickel premiums rose in the United States for the third week in a row with continued upward pressure evident on regional supply tightness and high ocean freight costs to import the metal.
O Nickel producers are putting an increased focus on sustainability credentials in a bid to lock in consumer demand from the automotive industry
O The Nova mine produced 29,002 tonnes of nickel concentrate for the year, and IGO expects its 2022 output to be between 25,000-27,000 tonnes.
O Citing a report from Wood Mackenzie, Posco said the number of electric vehicles in the global market, which surpassed 3 million last year, will grow to over 32 million units by 2030. The demand for high-purity nickel would also increase alongside the electric vehicle boom by an annual average of 23 percent, it said. Raising the prospect that the market may face a shortage of the high-purity nickel after 2025, Posco said it seeks to obtain the key materials in advance and create a strong value chain of its secondary battery material business.
O International mining company BHP have signed an agreement to supply nickel to electric vehicle (EV) manufacturer Tesla Inc. on Thursday July 22, marking another long-term supply deal with an emphasis on establishing a low-carbon supply chain.
O The rapid increase in the Delta-variant of COVID-19 in the world's largest producer Indonesia raised concerns over disruptions in the supply chain, thereby supporting prices of the metal.
O In addition, the imposition of export tax in Russia on nickel, along with copper, aluminium, and steel, for Aug-Dec, as a measure to curb the rapid increase in domestic prices, also supported sentiment for the metal.
O Russia is home to Norilsk Nickel, the world's largest producer of refined nickel, and any tax on exports could impact the global supply chain and prices of the commodity.