Is a nickel still worth a dime? Unpacking nickel pricing mechanisms, a year on

A year after a historic short squeeze sent LME nickel metal prices soaring above $100,000/mt, industry players remain divided over their pricing preferences in the nickel market with some still referencing the LME, while Chinese market participants have largely moved to other alternatives such as sulfate-basis pricing and SHFE nickel. 

Following the Indonesian government's announcement of its plan to develop a nickel index, as well as proposed changes from the LME to strengthen its legacy position, what are the potential implications for the nickel market, and how could near-term supply-demand fundamentals influence this? 

Leah Chen, editor of the S&P Global Commodity Insights non-ferrous team discusses the impact of the black swan event as well as recent developments in the nickel industry with Jesline Tang, editor of battery metals pricing team, and Charles Thompson, editor of EMEA nickel, aluminum and secondary alloys.

 

Related price assessments:

Nickel sulfate DDP China BATNS04 
MHP CIF NA basis LME BATMC00 
MHP CIF NA basis NS BATMB00 (percentage) 
MHP CIF NA basis NS BATMA00  
MHP CIF NA basis NSME00  
MHP CIF NA basis LME BATMD00 (percentage) 

 

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