Spot Price of Nickel Market Overview

The spot price of nickel is a crucial factor in the global market, and understanding it can be a game-changer for investors and manufacturers alike.

Nickel is a highly versatile metal, used in everything from stainless steel to electric vehicle batteries, which drives up demand and contributes to its high spot price.

The spot price of nickel is influenced by supply and demand dynamics, with a significant portion of global production coming from Indonesia and the Philippines.

Nickel's spot price can fluctuate rapidly due to various market and economic factors, making it a challenging commodity to trade.

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Nickel is primarily sourced from two types of deposits: sulfide and laterite.

The sulfide deposits are typically found in Canada and Russia, with the Sudbury Basin in Canada being one of the largest nickel-producing areas.

Laterite deposits, on the other hand, are found in Indonesia, the Philippines, and New Caledonia.

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Nickel sulfides are formed during the cooling of sulfide melts caused by host rock contact with magmatic or metamorphic processes, or from meteoric impact.

Pentlandite is the most common nickel sulfide, and it's typically composed of approximately 34% nickel.

Pentlandite is found in geological complexes throughout the world, which is why it's widely used.

Saprolite type nickel ores are found below the limonite zone, and they contain 1.5-2.5% nickel.

Garnierite, a type of nickel ore, can be found in serpentinite, and it has a high nickel content of 20-40% in pockets and fissures.

The London Metals Exchange (LME) is a hub for trading industrial metals, and LME nickel is one of the many non-ferrous metals listed on the exchange.

Prices for LME nickel are quoted in USD/tonne, providing a transparent and accurate reflection of the market.

The LME has hundreds of approved warehouses where nickel is stored physically, offering immediate access to buyers and a more accurate price quote.

LME approved warehouses are close to demand, allowing buyers to access the metals they purchased quickly and easily.

In contrast, non-approved warehouses can have hidden or hard to interpret inventory levels, leading to inaccurate global inventories and incorrect nickel prices.

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The price of Nickel (China) decreased significantly in December 2019, dropping to 15,900 USD per metric ton, a 14% decline from the previous month.

This price drop is notable, especially considering the substantial 20% increase in Nickel (China) prices over the past year.

In contrast, the global average price of Nickel was 13,800 USD per metric ton in December 2019, which is 9% lower than the price one month prior.

Looking back, the global average price of Nickel has increased by 3,000 USD per metric ton over the past year, from 10,800 USD per metric ton.

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