Wed, May 22, 2024

Nickel Prices Shift Amid Supply Fears

The Central Bank of Russia and crypto, nickel

Quick Look:

  • Nickel prices hit a seven-month high on the London Metal Exchange and Shanghai.
  • Chinese stockpile reports and a Russian metal ban drive this surge.
  • Tin, aluminium, and zinc prices also saw increases. Meanwhile, lead dipped on both the London and Shanghai exchanges.
  • Nickel Creek Platinum Corp experienced notable stock volatility amidst broader market shifts and mixed forecasts for metals like copper and gold.

In a week marked by significant fluctuations in commodity prices, traders and investors are closely monitoring the movements across several key metals on global exchanges. Nickel prices reached multi-month highs in both London and Shanghai. This surge was driven by increasing worries about supply constraints due to geopolitical tensions and strategic actions by major economies.

Nickel Prices Hit Multi-Month Highs

On Monday, the three-month nickel price on the London Metal Exchange (LME) soared to $19,740 per ton, marking a 0.8% increase and reaching its highest point in seven months—an impressive weekly rise of 8.6%. At the same time, the most actively traded June nickel contract on the Shanghai Futures Exchange (SHFE) surged by 6%, hitting 147,660 yuan per ton ($20,389.68), the highest point since last October.

This surge in nickel prices is largely attributed to reports of the Chinese government’s considerations to purchase nickel for state stockpiles, fuelling worries about potential tight supplies. Additionally, a recent ban on metals sourced from Russia has compounded these concerns, fostering fears of global supply disruptions.

Mixed Price Movements Across Other Metals

While nickel stole the spotlight, other metals also saw notable price changes. Tin, traded on the LME, increased by 1%, closing at $35,950 per ton. Aluminium and zinc, also on the LME, recorded slight increases of 0.3% and 0.4%, respectively, with aluminium settling at $2,678 per ton and zinc at $2,863.50 per ton. Conversely, lead on the LME experienced a decrease of 0.7%, dropping to $2,204 per ton.

On the Shanghai exchange, tin showed a robust performance with a 5.5% rise, reaching 282,050 yuan per ton. Aluminium and zinc there experienced increases of 1.8% and 1.5%, respectively, while copper surged by 2.2% to 80,720 yuan. However, lead recorded a marginal decline of 0.3%.

Spotlight on Nickel Creek Platinum Corp

Antaike has issued a robust outlook for certain metals, including copper, gold, and aluminium, amid these price volatilities. The forecast is driven by a robust demand outlook in China and ongoing macro uncertainties influencing global markets.

Moreover, Nickel Creek Platinum Corp (Ticker: NCP), listed on the TSX, showed some volatility during these market shifts. The company’s shares fluctuated between $0.01 and $0.02 throughout the trading day, ultimately closing at $0.02—a significant daily movement for a stock with an average volume of 79,651 over the past five days. This small-cap company, based in Oakville, Canada, has a market capitalisation of $10.17 million despite facing a ‘Strong Sell’ analyst rating. Nickel Creek Platinum has experienced a year-to-date price increase of 33.33%, although it has declined by 55.56% over the last twelve months.

Future Outlook on Commodity Markets

As global markets react to the evolving geopolitical landscape and strategic economic policies, the commodities sector remains a critical area of focus for investors and analysts alike. With the possibility of further disruptions and policy changes, the volatility observed this week may set the tone for trading dynamics soon.

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