Not sure if anyone has posted this before. I found it very informative about the current "state" of the nickel sector:
https://www.reuters.com/article/us-...fracture-the-nickel-market-home-idUSKCN1GK2EP
The way I see it, the current pricing of nickel is an "illusion" because of the Nickel Pig Iron (NPI) factor: it is something that will never be used for battery making, yet it is currently skewing the price of nickel far lower than it naturally would've been. For example, you can buy 100 kg of NPI for $50 (trying to use a really cheap price to illustrate here), but battery makers will never buy it because it cannot be used to make batteries. Re-processing it to make sulphate is out of the question due to both economical and environmental reasons. They will, however, buy 100kg of nickel sulphate for $500.
This means that the demand for nickel sulphate is actually distinct from the demand for NPI. You might as well think of them as totally different materials / markets!
What do you think will happen to the value of companies like ARL if there really were an entirely separate price index for nickel sulphate?
Pertinent market/industry news/articles, page-61
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Last
58.5¢ |
Change
-0.070(10.7%) |
Mkt cap ! $130.7M | |||
| Open | High | Low | Value | Volume |
| 65.0¢ | 65.0¢ | 56.0¢ | $123.8K | 197.0K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 15015 | 58.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 60.5¢ | 13611 | 3 |
View Market Depth
| Last trade - 10.29am 03/05/2024 (20 minute delay) ? |
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Last
57.5¢ |
Change
-0.070 ( 14.2 %) |
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| Open | High | Low | Volume | ||
| 62.0¢ | 64.0¢ | 56.0¢ | 76736 | ||
| Last updated 10.48am 03/05/2024 ? | |||||
| ARL (ASX) Chart |