18 November 2022 – SHFE nickel contracts were again resilient to the chaos on the LME in Friday trading. World Steel sees demand growth for steel in many regions for 2022, but especially for 2023, despite challenges, and Indonesia approaches Canada at G20 summit about setting up a producer bloc.
SHFE contracts barely react to LME nickel chaos
SHFE nickel contracts were again resilient to the chaos on the LME in Friday trading. Many contracts moved sideways or even rose by up to 1.6%.
Another indication of our attitude towards the increasingly meaningless trading venue in London. In addition, other industry media have adopted our views on the events at the LME and the rapid rise in prices.
At the start of trading on the LME today, the nickel price briefly jumped by more than 2% and is currently (18 November 2022, 9:45 am, CET) up by around 1.8%.
World Steel sees demand growth in 2023
Despite major challenges, the World Steel association sees an increase in demand for steel products coming in 2023. Overall, the global demand development shows a positive trend, especially in the emerging countries. Demand in 2022 continued to increase, especially in Africa, the Middle East and North America. For 2023, demand in Africa, Asia and Oceania, parts of Europe, North America, the Middle East and Central and South America is expected to jump by up to 4.4% in some cases.
Producer bloc: Indonesia approaches Canada
For some days now, the media have been reporting that Indonesia wants to set up an OPEC-like organisation for nickel-producing countries. Now the Asian country, which is one of the most important producers of the raw material for stainless steel and EV-batteries in the world, has approached Canada with this proposal at the G20 talks.
Organising policy on nickel
Bahlil Lahadalia, Minister of Investment of Indonesia, has proposed that an organisation similar to OPEC, a group of 13 oil-producing countries, could help organise and streamline policy on nickel, a key mineral used in the manufacture of batteries, including for electric vehicles, stainless steel and mobile phones, in a meeting with Canadian Trade Minister Mary Ng, according to media reports.
So it could be getting serious about an OPEC-style cartel that could have a major impact on production of the base metal and therefore prices.
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