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22.07.202514:24:12UTC+00Nickel Rises to 1-Month High

Nickel futures reached $15,500 per tonne in July, marking their highest level in over a month, as they followed the upward trend observed in base metals. This increase temporarily outweighed concerns about excess supply, largely bolstered by a more optimistic forecast for Chinese manufacturing. The industrial minerals market observed an uplift after China revealed plans for a CNY 1.2 trillion hydroelectric power plant. This move indicates a strategic pivot towards infrastructure investment as a means to mitigate the adverse effects of its ongoing real estate downturn. Additionally, this development briefly improved the demand outlook for anti-corrosion materials. Concurrently, Indonesia's significant shipments of nickel prompted the country to slash its nickel mining quotas by 120 million tonnes to 150 million for the year, effectively reducing global supply by 35% from present figures. This reduction comes in response to the surge in Chinese smelting projects within Indonesia, following its 2020 ban on nickel ore exports. As of September, Indonesia hosted 44 nickel smelting operations, a substantial increase from just four a decade ago.

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