The global nickel market continues to suffer a disconnect between on-exchange activity and market fundamentals, with the appetite for physical material distinctly lackluster, while speculative sights are set firmly on the electric vehicle (EV) battery revolution.
Shanghai Futures Exchange nickel prices continue to be volatile despite stagnating stainless steel and EV demand for nickel because of the Covid-19 pandemic."Speculative and physical buying in China have led to short covering on the LME, [with] investor inflows... very [much a] Chinese driver until the LME caught up through June/July [when] risk-sentiment improved for ex-China traders. And, as expected, that...