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Below are Views On Revised Base Metals Update By Mr. Yash Sawant, Research Associate, Angel Broking Ltd

Nickel Update

MCX Nickle prices are up about 10 percent in July’21 whilst LME nickel prices rose about 7 percent. Nickel prices continue to rally despite mounting worries over the delta variant of the covid19 virus and China’s constant attempts to ease commodity prices.

Surge in demand from the stainless-steel sector, the major consumer of Nickel, and expanding EV segment outpaced concerns on the macro level and kept Nickel prices elevated. Even the LME Nickel inventories are down over 17 percent since mid April’21 (current at 217878 tonnes as on 27th July’21).

Further supporting Nickel prices was Tesla, the electric car producer, striking a deal with BHP Group for supply of Nickel, a metal vital in producing high-powered batteries for electric cars, in order to avoid the future supply shortage.

Markets expectation of sustain economic recovery and booming demand for Nickel as the Electric vehicles become more common in the coming years might continue to support Nickel prices.

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