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[Ferro-Alloys.com]
Declining Demand for EVs Is Weighing on the Nickel Market
Nickel prices are proving a headache for miners across the world: oversupply of the metal plus low electric vehicle (EV) demand has created a profit-stealing two-year price slide.
Anglo American’s nickel revenues fell by around 23 percent in 2023, according to its latest earnings report. The EBITDA for nickel at Vale fell by 56 percent over the same period.
How have prices fallen so far, so quickly?
Oversupply from Indonesia
Part of the reason nickel prices have been sliding is oversupply in the market.
Indonesia has been the “main [source] of supply growth in the last few years” due to a lack of investment from the traditional players in the nickel market, Nikhil Shah, nickel analyst at CRU, said.
This glut of nickel has pushed the price down, Shah said, adding that prices will “remain under pressure throughout 2024.”
Steering away from EVs
On the other side of the equation, demand for EVs is weakening, pulling nickel prices even further down. Nickel is a key component in EV batteries.
After a frenzy of activity and hype in the last few years, sales of EVs slowed in 2023 and are likely to slow further.
Source: OilPrice
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- [Editor:邢亚敏]
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