Nickel futures have declined to a nearly two-year low, falling below the $19,000

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  • Commodities News
Nickel futures have declined to a nearly two-year low, falling below the $19,000

Nickel Futures: Nickel futures have declined to a nearly two-year low, falling below the $19,000 per tonne mark. This decline is attributed to several factors affecting the nickel market.

Prospects of Elevated Interest Rates: The market sentiment has been impacted by expectations of higher interest rates from major central banks, including the potential for such rate increases in the United States. Elevated interest rates can have implications for economic growth and demand.

China's Economic Slowdown: China's economic growth has slowed, and this has dampened the demand outlook for nickel. The downgrade of China's GDP forecast for 2023 and 2024 by S&P is a reflection of continued weaknesses in China's property and construction sectors. The potential liquidation of Evergrande, a major property developer in China, has contributed to these concerns.

Electric Vehicle (EV) Industry: The electric vehicle industry has also faced challenges, with battery prices declining by 10% in August. Manufacturers of batteries for new EVs have reduced their input buying activity in the third quarter. These developments have implications for the demand for nickel, which is used in batteries for EVs.

Alternative Battery Technologies: The discovery of a lithium deposit in the United States has increased interest in lithium-ion batteries, which could potentially undermine nickel-based alternatives in the battery market.

Nickel Stocks and Supply-Demand Dynamics: Nickel stocks have remained at multi-year highs, and the market is currently facing the largest demand-supply surplus in at least a decade. These supply-demand dynamics have contributed to the downward pressure on nickel prices.

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  • Neera CHOURASIA @Neera CHOURASIA
    It is all due to fact that Nickel is not being traded I'm MCX or other bourse.
    Like 0

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