May 20, 2022 – The nickel price on the LME exited trading yesterday (Thursday) up more than 8%. Dip-buying due to the current market outlook for commodities – scarcity, high demand and 800 billion investment in offshore energy alone by 2050 – is driving prices. Not only in Europe, but also in Asia, as a look at price developments on SHFE and DCE shows. And Indonesian minister confirms planned export ban for bauxite and tin in 2022.
Bottom reached, nickel jumps more than 8%
Yesterday, May 19, 2022, the nickel price on the London Metal Exchange made a strong jump of more than 8% and closed at $ 28,231 per ton. The background here seems to be the expectation of nickel traders that the bottom has been reached and that the nickel price has significant room to move up. Classic dip-buying.
Renewable Energies: Base metals with a lot of growth potential
There should not be much downward movement in nickel and other base metals in the second half of 2022. The announcements by the European Union alone of its intention to invest 300 billion euros in renewable energies by 2030 and the declaration by the heads of government of the countries bordering the North Sea on Wednesday (May 18) in the Danish city of Esbjerg to increase investment in wind power tenfold – another 135 billion euros.
At least 800 billion euros will have to be invested in offshore energy by 2050 to meet the EU’s climate targets – according to current estimates.
Analysts: Raw materials in scarce supply in Europe
Other analysts also come to the conclusion that raw materials must continue to be seen in an upward trend – especially for copper, nickel and aluminum. And that Europe must address this challenge in raw material procurement, as it does not have sufficient deposits and production capacities of its own.
Asian base metals clearly up
Base metals on SHFE, as well as stainless steel and HRC futures, but also iron ore and coke on DCE, gained significantly today’s trading session. SHFE nickel is up 4.8%. Iron ore is up more than 5.3%. DCE coke is up more than 4%. Stainless steel futures are up 3.3% and HRC is up 2.27%. Aluminum, zinc, lead, copper and tin also gain.
Bauxite and tin: Indonesia to ban exports in 2022
Back in November 2021, we reported that Indonesia intends to ban further commodity exports. The Indonesian Minister of Investment and Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia has now confirmed once again that bauxite and tin will be subject to an export ban from 2022.
According to the minister, the nickel export ban has verified that it would favor exports of higher-value products.
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