January 14, 2022

LME Nickel’s rally continues as supply concerns mount. 

As of this writing, LME Nickel 3M has rallied about $1,265/mt, or 6.1%, this week as supplies could become tighter in the future. Talon Metals has signed an agreement to supply 75,000 mt of nickel over six years to carmaker Tesla. The Minnesota-based mine project is set to open in 2026. Electric vehicles such as Tesla use nickel in their batteries. Likewise, Tesla’s Cybertruck uses nickel in the stainless-steel body parts. The burgeoning electric vehicle industry might keep nickel demand high and supplies tight in the coming years.   

Also, reports that Indonesia, the world’s largest nickel supplier, is considering an export tax aided in driving prices higher this week. The country is concerned about depleting domestic stocks. Indonesia produced 760,000 mt of nickel in 2020.  (1/14/2022)

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Price Indications

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AEGIS Insights

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Important Headlines & Economic Data

AISI Steel Capability Utilization Rate

Investing.com Economic Calendar 

1/12/2022: Workers at Teck’s Highland Valley mine threaten to strike

1/12/2022: Nickel price storms to 10-year peak on supply worries

1/11/2022: Exclusive: China's Metals Output in December

1/10/2022: Tesla signs deal for first U.S. nickel supply with Talon Metals

1/10/2022: Nickel price hits highest in a month with inventories close to record lows

1/7/2022: French aluminium smelter to cut output by 15% on energy costs