LONDON, Sept 17 (Reuters) – Russian president Vladimir Putin’s suggestion that Moscow should consider capping exports of nickel in retaliation for Western sanctions has been greeted with a collective shrug by the market.
The London Metal Exchange three-month price has managed a weak bounce through the $16,000-per metric ton level but the momentum is already fading. This is a far cry from February 2022, when Russia first invaded Ukraine. Fears that metal from Russian giant Norilsk Nickel might have sanctions imposed generated a monster rally in 2022 that morphed into a full-blown meltdown of the LME nickel market.
But two and a half years is a long time in the nickel market. Instead of an acute supply deficit, there’s now a massive surplus. Prices have fallen to levels that are forcing many higher-cost operators out of business. Even Norilsk’s high-purity refined nickel is rapidly being displaced by a new generation of Chinese and Indonesian producers.
For the rest of this article: https://www.reuters.com/markets/commodities/nickel-market-no-longer-afraid-losing-russian-supply-andy-home-2024-09-17/