The nickel price is still in a downward trend, why is this happening?

The nickel price is still in a downward trend, why is this happening

The price of nickel is still on a downward trend. Quoting Bloomberg, in trading the nickel price on the London Metal Exchange (LME) for 3-month delivery contracts is at the level of US $ 16,151 per ton. This price decreased from the price in trading which was at the level of US $ 16,214 per ton.

In fact, the current nickel price level is further away from the price at the beginning of trading in March 2021, which reached the level of US $ 18,682 per ton.

NH Korindo Sekuritas Indonesia analyst Maryoki Pajri Alhsunah said the decline in nickel prices was due to increased supply. This increased supply is inseparable from the re-operation of Norilsk Nickel (Nornickel). Nornickel itself is a giant nickel and palladium mining company originating from Russia.

Indonesia is the Largest Nickel Ore Producer in the World

On the other hand, a nickel company from China, namely Tsingshan, will also boost production to supply the needs of the battery industry. “So with these two backgrounds, it can trigger an increase in nickel supply so that the price decreases,”

NH Korindo Sekuritas estimates that nickel prices will tend to be stable in the range of US $ 16,000- US $ 17,000 per ton this year. The green energy movement campaigned by the President of the United States (US) Joe Biden, will be a positive catalyst for this metal commodity.

On Wednesday (17/3), the stock prices of a number of nickel companies varied. PT Aneka Tambang Tbk (ANTM) shares rose 1.32% to the level of Rp 2,300. Shares of PT Vale Indonesia Tbk (INCO) fell 1.10% to the level of Rp 4,510 and shares of PT Central Omega Resources Tbk (DKFT) were stagnant at the level of Rp 168.

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