The price of nickel – the key metal mined in Sudbury – has risen to its highest in almost two years.
Bloomberg News says reduced mining quotas in major producer Indonesia and a global sulfur shortage have tightened the supply outlook for the battery metal.
On Tuesday, nickel was selling for US$8.57 a pound. A few months ago, nickel was hovering around the $6 mark.
Nickel is perhaps the most important mineral that Vale Base Metals and Glencore – two of Sudbury’s major employers – produce here. Higher nickel prices are good for the companies and Sudbury’s economy.
Bloomberg said nickel prices have been rising since the start of the Iran war, which is driving a surge in prices of sulfur — a key reagent used in processing — and fueling concerns over disruptions to global mining, including mixed-hydroxide precipitate production in Indonesia and copper leaching in Africa.
Nickel mining in Indonesia is already under pressure after the country slashed its production quota to revive prices for the metal, Bloomberg said. The Asian country accounts for well over half of global production, thanks to a wave of Chinese investment in smelters.
“Market sentiment on nickel remains positive as traders await further upside catalysts pointing to a substantial production cut in MHP,” Jinrui Futures Co. said in a note, referring to the mixed-hydroxide precipitate, an intermediate product containing nickel.
