October 28, 2021 – Nickel and aluminium remain at high levels despite price consolidations on the commodity exchanges despite all the excitement it is always worth looking at the facts. Delivery times for semi-conductor chips are rising much more slowly. And India is looking for its own ways in the climate crisis and does not want to get involved in a net-zero target.

Stainless Espresso: Nickel and aluminium still at a high level
Stainless Espresso: Nickel and aluminium still at a high level

Delivery times for chips rise much more slowly

According to an analysis by Susquehanna Financial Group, delivery times for semiconductor chips rose in October at the lowest rate in the last nine months. On average, delivery times rose by only a single day.

This should bring some relief to the tight market, especially for chips for energy management and optoelectronics.

Next bottleneck already in place: magnesium

As reported, magnesium, which is so important for car manufacturing, is expensive and scarce. It now remains to be seen how quickly this shortage will be reflected in the availability of steel and aluminium, especially in car manufacturing.

India wants to soften climate targets

According to recent media reports, India does not want to commit to a net zero carbon emissions target. Instead, it sees the path to this goal as more important. The question is, however, whether the subcontinent can afford it – and not only in monetary terms. In the run-up to the COP26 climate conference, however, this Indian announcement could be an impulse to take a closer look at the plans of the other countries and find more intelligent ways to achieve the important goals.

Nickel and aluminium still at a high level

Despite the consolidation on the nickel market in recent days, the price of nickel on the LME (+1,6%) and SHFE (0,8%) is still at a higher level than at the beginning of August 2021. Prices for aluminium futures on both commodity exchanges also remain above the August level (LME +4,1%). Nickel and aluminium on the LME are currently trending upwards again by about 1%.

Source: lme.com, shfe.com.cn

Price consolidation on the commodity exchanges

The consolidation had started when China announced that it would cap coal prices, which had taken pressure off the higher prices. However, the basic global situation regarding availability – especially with regard to nickel for stainless steel or magnesium for aluminium – has not changed. Therefore, prices are likely to remain high and the central issue will continue to be availability.

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