Fastmarkets analysts Andrew Cole and Andy Farida and reporter Thorsten Schier size up the nickel market ahead of LME Week, which begins Monday October 11.
Nickel prices have been capped by the $20,000-per-tonne level this year, failing to sustain a meaningful break higher despite attempts in February and again repeatedly during July-September. The London Metal Exchange three-month price peaked at $20,705 per tonne during intraday trading in early September, which was a seven-year high, but we think nickel bulls will probably have to make do with this because the window of opportunity to achieve a break above $20,000 per tonne has likely closed for the year. Nickel's fundamental narrative earlier in the year was dominated by a bullish combination of supply disruptions and very strong demand from both the stainless steel and battery markets, especially in China. On supply, outside Indonesia (where output, uniquely, continues to surge amid...