Sleeping Beauty ASX BSX, page-459

My take on the nickel situation after reading a bit last night is inventory on the LME has built up again from last year's low levels which has caused the price to fall and obviously demand from China, it's biggest consumer has taken a hit because the country has shut down. This likely means that inventory will continue to build and the price will go lower still.

China makes a lot of stainless steel and pig iron which is the major driver of nickel demand but with everyone having to stay at home across the various industries involved, as well as downstream processing, logistics and transport within China stockpiles will build all through the supply chains of nickel.

The nickel price should go lower still as a result but with China's economy taking such a massive hit they are likely to inject stimulus into it to get it running again and demand will return once it does. There should be much nickel in stockpiles for it to eat up for a while though, once they get on top of the coronavirus and stimulate the economy.

Economies worldwide have taken a big hit from coronavirus so consumers may be reluctant to spend money immediately on nickel products even if China ramps up manufacturing quickly as it stimulates it's economy.

Might it be a quarter or two before the nickel price rises again?

BSX nickel sulphide is obviously unlikely to be destined for stainless steel or pig iron if the project is successful and will be likely processed in Vietnam, IMO, into the battery quality nickel sulphate required for battery cathodes, hopefully in partnership with the South Korean company investigating the downstream processing option in the country but with the coronavirus situation developing further and extending into Vietnam and South Korea, there may be delays and the overall nickel price will still drive the price of BSX nickel sulphate as well.