LONDON — Substantial new nickel supplies from top producer Indonesia in years ahead will ensure prices don’t return to levels that sparked chaotic trading in March, despite robust demand growth from stainless steel and electric vehicle battery makers.
However, prices now around $21,000 a tonne on the London Metal Exchange (LME), though down about 80% since hitting all-time highs in March, are still high enough to incentivise investment in new production capacity.
Nickel prices on the LME started their ascent in January as stocks in LME approved warehouses started to slide due to soaring demand from battery makers.
Most of the nickel in the LME system is in the form of briquette , easily crushed into small particles and dissolved in sulphuric acid to make nickel sulfate used for battery chemicals.
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