A selection of highlights for Q4 of last year in the nickel market.
- Indonesia Floated a Nickel OPEC: Indonesia has been pitching the idea of a nickel focused group like OPEC. I don’t we’ll see this come to pass but they are certainly pitching hard.
- Indonesia Doesn’t Want Any More Low-Grade Smelters: The investment ministry announced it’s cracking down on smelters that churn out low-value nickel products. From now on, they want high-grade output and greener practices.
- LME Nickel Chaos Still Haunted the Market: The LME was still licking its wounds from March 2022. Trust remains shaky and Global Commodities Holdings announced plans for a new physical nickel trading platform.
- EV Demand Kept the Pressure On: BHP predicted demand would quadruple by 2050 based on EV sales projections.
- EU’s Fight with Indonesia Hit: The WTO sided with the EU against Indonesia which has basically said it won’t be changing anything.
- Western Critical Minerals Priority: In December, a bunch of Western nations, including the U.S., UK, and Canada, launched the Sustainable Critical Minerals Alliance.
- Ford, Vale, and Huayou Teamed Up in Indonesia: Ford officially jumped upstream, partnering with Vale and China’s Huayou to develop a high-pressure acid leach (HPAL) project in Indonesia.
- Prices Stayed Volatile: After the rollercoaster in early 2022, nickel prices in Q4 continued to swing.
- The ESG Conversation Got Louder: Questions around labor practices, deforestation, and carbon emissions pushed ESG further into the spotlight. Companies started to realize that battery customers (and regulators) want clean nickel, not just any nickel. The problem with is that, at this point in time, the world can have clean nickel or cheap nickel, not both.
Anthony Milewski
Chairman, Nickel 28 Capital