Nickel inventories decreased on LME and SHFE. Fitch Ratings has raised its long-term nickel price forecast. And Russia is thinking aloud about increasing MET taxes for metal producers.
Facts, figures, data: Nickel inventories fall
For 12 days now, stocks for the 30-day LME nickel on the London Metal Exchange have been falling steadily.
On the Shanghai Futures Exchange, nickel inventories have also been falling steadily since the beginning of the year. Whereas on January 5, 2021, they stood at around 16,130 tons, on June 2, 2021, nickel inventories were only 6,850 tons.
Fitch Ratings upgrades nickel forecast
Rating agency Fitch has upgraded its long-term price forecast for nickel as they expect the market deficit to remain during their forecast period. This will be favored by increasing stainless steel production and the rise of electric vehicles, which will lead to higher consumption.
Russia considers raising taxes on metal producers
As reported by Russia’s TASS, First Deputy Prime Minister Andrei Belousov has said that Russia will decide this year whether to raise MET (tax on the extraction of minerals).
Turnover of metal producers has grown exponentially
The incomes of metallurgists in the Russian Federation have grown exponentially in 2020, they received 100 billion rubles in excess profits and must return this money to the budget. This was stated by the First Deputy Prime Minister of the Russian Federation Andrei Belousov in an interview.
No search for culprits
Russian President Vladimir Putin is aware of a significant increase in the income of metallurgists in 2020, but there is no need to look for those guilty of receiving excess profits. Press secretary of the head of state Dmitry Peskov told reporters about this on Monday.
State must compensate for imbalance
“It is hardly necessary to look for the guilty here, this is economic life: business makes money, the state receives taxes,” Peskov emphasized. He added that “when there is some kind of imbalance, the state evens out this imbalance.”
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