Anyone on what will be the mid/long term consequences for Nic. if Russia due to sanctions increase sales of nickel to China?
Supposing that sales of refined Ni for battery grade from Russia start to be diverted to China, this would create a void, of available product, in other market like Europe or USA.
In turn these market would be willing to pay an extra premium to fill the supply gap....
In other words if the west stop buying Ni from Russia they may have to source it from other countries, the overall market would balance out, but there could be an opportunity for Indonesia future battery grade Ni to be sold at higher price?!
In short I don't think much will change for Nic and TD, Russia Ni production overall is tiny compare Indonesia and Philippine two of the biggest Ni suppliers to China, although on the refined battery grade Russia could make a difference, due to sanctions. Also it is still to be see how much cheaper will be Russia Ni and battery grade Ni, is possible that for example the Rubble/Yuan exchange is going to be set at levels differed from USD/Rubble, making Russian commodities not that cheap after all..
Also I read that Indonesia export Ni to China in the form of Iron Ore and that 2020 NPI export have gone up 100%.
Is likely that China is more interested in energy commodity from Russia than anything else, because other kind of cheap imports would disrupt internal markets and productions. If China is already producing battery grade Ni and has more spare capacity for production, why would they buy from Russia, in stead of utilising internal capacity? Cheap export from Russia should compete directly on price with Indonesia NPI production, for it to be an easy and viable alternative .
All just my assumption for debate and not a financial advise.
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Anyone on what will be the mid/long term consequences for Nic....
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