Nickel investors before new entry?
Nickel investors before new entry?

7 September 2023 – Short setback in nickel futures. Are investors already close to re-entry? German auto market continues to grow significantly in August. And in the EU-US steel dispute is still no agreement in sight. Is a transatlantic steel cartel looming?

Nickel investors about to re-enter the market?

The current but manageable setback in the European and Asian nickel prices, may have to do with the exit of some long and short investors who are looking for a new opportunity to re-enter the nickel futures, as Indonesia is apparently behind schedule with the allocation of new mine quotas. 

In addition, several reports indicate that the local supply of nickel ore in Indonesia remains tight, which may be due in part to a surge in demand for ore that currently cannot be met and that Indonesian nickel processors are already looking abroad for raw materials. 

The Chinese Golian Futures also observes the possible shortage in Indonesian nickel ores and had reported in August still fallen stocks of pure nickel by up to 10% and observed a decline in the availability of ferronickel products.

As soon as the short and long investors re-enter the market, which should be expected in the short term, northward tendencies should be seen.

Germany: New car registrations up by more than a third

The number of new car registrations increased strongly in August. According to the Federal Motor Transport Authority, the number of newly registered passenger cars increased by 37.3 percent to 273,417 units in August. For the first eight months, the increase was 16.5 percent.

EU-US trade dispute over steel makes no headway

The positions in the steel dispute between the European Union and the United States still seem to be far apart, according to current reports. The EU in particular wants to avoid the appearance of a transatlantic steel cartel with a joint climate club. But in doing so, the already existing oligopolistic affiliations of European steel companies to the United States seems to be forgotten.

Massive opportunity to address climate change and create a level playing field for industry?

As Axel Eggert, head of the European Steel Association, is reported to have told the magazine Politico, the EU would be shooting itself in the foot if it did not finalize the steel agreement, as it offered a great opportunity to address climate change and create a level playing field for industry.

Fair competition only for EU mills?

Surprised? We aren’t. Since this deal is meant to serve EU steelmakers exclusively, Mr. Eggert must be taking this stance on behalf of EU mills. Because this has nothing to do with fair and equitable competition conditions (the level playing field), and if anything, it is only the form of justice as he understands it.

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