Severe Supply Tightness of NPI Sent Nickel Prices to Record High

SHANGHAI, Oct 25 (SMM) – The current tightness of NPI, coupled with the upward trend in cost-end prices (mainly rising electricity prices) and the reduction in NPI output caused by power rationing, has made the problem of NPI shortage more difficult to solve. And the supply of NPI in Indonesia is still tight. In the first quarter of next year, as the rainy season in the Philippines leads to a decrease in China’s imported nickel ore, it is expected that the tightness of NPI in the first quarter will reach the highest level in recent years.

The downstream buyers are expected to increase the proportion of pure nickel, stabilising nickel prices at low levels. Whether nickel prices can return to a high level may depend on whether the excess nickel sulphate will lead to the reduction of production using dissolved nickel briquette.