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AEGIS is attending the Harbor Aluminum Summit at the Radisson Blu Aqua Hotel in Chicago on June 7 – 9. If you would like to schedule a meeting during the summit, please contact Patrick McCrann at pmccrann@aegis-hedging.com or (713) 936-2806.
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Global nickel production could reach 3.21 million mt in 2022, up 19% year-over-year, according to Russian producer Nornickel. They believe that demand will reach 3.17 million mt, leading to a surplus of 40,000 mt. Nornickel cites Indonesian production growth for the increase in supply, as they expect the country’s nickel pig iron production to grow by 33% year-over-year to 1.1 million mt. Nickel pig iron is used in stainless steel production and is a low-grade, cheaper alternative to pure nickel according to S&P Global. Nornickel, which is the world's largest refined nickel producer, produced 190,000 mt in 2021, according to their 2021 annual report. Nickel prices have been volatile in 2022, trading to $55,000/mt in early March. Prices are down nearly 52% since then, to $26,420/mt (7:00 AM CST), and down almost 17% in May alone. As Nornickel's expectations would likely support prices, stainless steel producers could consider hedging future needs via swaps or call options, as doing so can help guard against a potential increase in nickel input costs. Such positions are standard for consumer hedging, but they can result in opportunity costs or cash costs if metal prices decline. Please contact AEGIS for specific strategies that fit your operations. (5/25/2022) |
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Note: Clients with AEGIS Platform access can see this and other research, plus hedge portfolio reporting and tools here. |
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Today's Charts |
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AEGIS Insights |
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05/23/2022: India's Steel Exports Tariffs Shock Producers 05/18/2022: AEGIS Factor Matrices: Most important variables affecting metals prices 05/11/2022: China's Metals Exports are on the Rise |
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| Important Headlines | ||
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5/24/2022: Nickel market to swing to mild surplus persisting beyond 2022: Nornickel 5/23/2022: India raises export duty on iron ore, Chinese reception mixed 5/23/2022: Moody's says increase in India's export duties on iron ore, pellets to raise costs for steel mills 5/22/2022: Indian steelmakers face hit on Europe deals over export tax, Jindal executive says 5/21/2022: Work suspended at Botswana's Khoemacau copper mine after accident kills two |
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Important Disclosure: Indicative prices are provided for information purposes only, and do not represent a commitment from AEGIS Hedging Solutions LLC ("Aegis") to assist any client to transact at those prices, or at any price, in the future. Aegis makes no guarantee to the accuracy or completeness of such information. Aegis and/or its trading principals do not offer a trading program to clients, nor do they propose guiding or directing a commodity interest account for any client based on any such trading program. Certain information in this presentation may constitute forward-looking statements, which can be identified by the use of forward-looking terminology such as “edge,” “advantage,” “opportunity,” “believe” or other variations thereon or comparable terminology. Such statements are not guarantees of future performance or activities.
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