Summary of October 31, according to news, strategic marketing director of Russian mining giant Nornickel AntonBerlin said that capital expenditures over the past few years the global nickel industry downturn will affect future production and support prices of the metal. London...
According to news from October 31st, Anton Berlin, director of strategic marketing for Russian mining giant Nornickel, said that the decline in capital spending in the global nickel industry over the past few years will affect future production and support the price of the metal. The three-month nickel of the London Metal Exchange (LME) rose 37% from its February low to $10,431 a tonne, benefiting from the closure of the Philippines mine and the Indonesian nickel ore export ban.
Berlin believes that nickel prices are still seriously undervalued.
“We know that no one has invested capital in expansion for a long time,†Berlin said. “In recent years, production has not changed, and consumption has risen. At the same time, market confidence should change.†“The characteristics of mining are If there is no capital investment, production will begin to decline," he said before the LME week, the annual meeting of the global metal industry will begin this week.
Berlin said concerns about the uncertainty of Indonesia's ban and how many mines in the Philippines will be closed due to environmental audits have caused price volatility to increase and the impact will continue until the situation is clear.
“As for the Philippines, the market is not fully aware of the local conditions. The review will continue and the market is unclear what it means. About 177,000 tons of nickel production is at risk every year. But what does the audit show? (Violation of environmental protection) Is the problem serious? ?"
In 2015, Nornickel produced 266,406 tons of nickel, making it the second largest nickel producer in the world, second only to Brazil's Vale.
Nornickel also produces cobalt, but production data has not been released. Cobalt is an important element in the production of lithium batteries for vehicles.
The demand for electric vehicles is rising, and the outlook for cobalt is expected to be good, but Berlin said it is difficult to give an estimate because the amount of cobalt used in electric vehicles has changed very much.
He said that Nornickel's cobalt production is roughly related to its main output dynamics in the coming years.
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