January 2020 | Base Metals
Nickel: Fighting resistance
Nickel’s current technical setup seems to have prices capped around $14,000 per tonne, with the continued build in LME stocks contributing to the resistance by dampening short-term price sentiment. Longer term, nickel’s bullish narrative remains intact.
Complacent EV bulls burnt by 2019 downturn... While the battery market still only accounts for around 5-6% of nickel market share versus stainless steels 60%-plus, we have seen on numerous occasions in the recent past that developments in the EV and Li-ion battery sector can have a disproportionately large impact on nickel market sentiment and price direction. So with almost a complacent bullishness over the outlook for EVs, it is understandable that nickel bulls were in shock last year when growth in the key Chinese market went into reverse after the government cut subsidies. ...as Chinese sales fell short of the governments 1.5 million target Full year figures from the...
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