SPONSOR: Tartisan Nickel (TN:CSE)  Kenbridge Property has a measured and indicated resource of 7.14 million tonnes at 0.62% nickel, 0.33% copper. Tartisan also has interests in Peru, including a 20 percent equity stake in Eloro Resources and 2 percent NSR in their La Victoria property. Click her for more information

A nickel for your thoughts – The price of nickel has run up to a five-year high of late

By Gwen Preston

The price of nickel has run up to a five-year high of late, defying softness in the rest of the base metal complex.

The reasons are both simple and complicated. The price of nickel doubled in two years, from US$4 per lb. in August 2017 to US$8 per lb. a few weeks ago. The reasons:

· Robust demand. Nickel is primarily used to make stainless steel. And despite slowing growth, stainless steel demand keeps marching up.

In the first half of 2019, for instance, Chinese stainless steel production was up 8.5% yearover-year. (As the chart suggests, forecasts predict softening of demand in the current quarter.)

· China makes most of the world’s stainless steel. And China gets the nickel for that steel from its own mines as well as mines in Indonesia and the Philippines, many of which produce a lowgrade, high-impurity ore called nickel pig iron (NPI). NPI production has ballooned over the last decade, enough that as of 2020 the world will get more of its nickel from NPI than from conventional nickel ores. However, this reliance on NPI brings with it a few problems.

· Indonesia will implement a ban on nickel ore exports at the start of 2020. This has been in the works for some time but until a few months ago the ban was not scheduled to take effect until 2022. Indonesia produces roughly ~12% of global supply, so this ban is significant. The idea is to push the development of domestic smelters, which would keep more of the resource upside in country versus exporting raw ore. This is in the works – the country already has 11 nickel smelters and 25 more are planned or under construction – so Indonesian nickel supplies should slide in the near term but recover within about three years. However, the smelters in China that relied on Indonesia’s nickel pig iron (NPI) ore will have to find feed elsewhere; the main candidate is the Philippines, where ore is generally lower grade. The only other option is to upgrade to processing Class I ores. Either move would increase costs overall, which supports a higher nickel price.

· Batteries. Eighty percent of the world’s nickel goes into stainless steel, so steel certainly drives the market. But many of the batteries that power laptops, electric vehicles, phones, and even power grids require nickel. This has transformed nickel from a one trick pony to a two trick market – and if electric cars take off then nickel’s battery market will take off right alongside. Right now batteries consume 5% of global nickel but demand is rising rapidly and is expected to reach 8% by 2020. Vice President of market analysis and economics for BHP, Dr Huw McKay, says he sees a future where batteries and stainless steel become “equally important” nickel consumers. Global nickel demand currently sits around 2 million tonnes per annum; it is expected to grow to 6 million tonnes per annum by 2035 with batteries accounting for almost half of demand growth.

· In addition, batteries cannot use nickel from NPI, as impurities are too high, so the battery factor has divided the nickel market into two parts – high purity Class I nickel and lower purity Class II. All of this has two important effects: it is bringing energy metal investors into the nickel space and it is underlining that NPI, which has been the dominant source of nickel growth for the last 10-plus years, will not solve the nickel supply gap going forward.

· To address that second point and boost production of Class I nickel, China is developing several mines tapping into nickel laterite deposits. Nickel laterite is easy to mine but very difficult to process, requiring high pressure acid leaching (HPAL). Most analysts are highly skeptical that China’s planned HPAL facilities will come online anywhere near their projected timelines or budgets, as these facilities are notoriously difficult and expensive.

· Because NPI has ballooned so in the last decade, explorers and developers have not looked for conventional nickel deposits. There is a true lack of development-stage nickel projects with conventional sulphide deposits that could be built to fill supply gaps.

· Current mine-specific supply issues. The biggest producer of NPI in the Philippines just ran out of ore. The Ramu project in Papua New Guinea is temporarily suspended, which removes 35,000 tonnes of annual nickel supply.

· Stockpiles are falling – and fast. Nickel stockpiles have been declining for five years.

This is what happens when a market is persistently undersupplied. But as you can see, the decline accelerated in the last two years…and stockpiles dropped off a cliff a few weeks ago.

The cliff is likely the result of panic buying and/or stockpiling ahead of the Indonesian ban.

I told you it was complicated!

Complicated is normal for nickel, which has a long track record of extreme price moves. In 2008 a supply shortage drove the price as high as US$22 per lb. before steel mills found substitutes, 7 including manganese, and within 18 months the price was back at US$4.50 per lb. (The Great Financial Crisis likely exacerbated the price decline.)

The Bear Case

The key question on this side is: to what extent is speculation driving nickel?

If speculators are pushing the price up, entering the space now is risky because (1) speculative tides turn fast and (2) that turn would likely transpire in the next 6 to 9 months. Indonesia’s ban comes into effect in January 1 so over the next six months the impacts start to play out.

It’s clear that stockpile drawdowns are at least in part because smelters and speculators have been stockpiling metal privately. That metal will be used or sold to ease any nickel price jumps.

If increased physical metal availability coincides with the absence of speculative upside pressure…nickel could turn down fast.

On top of all that, there are reasons to believe (1) stainless steel demand will weaken to end this year, (2) EV demand is taking longer to ramp than expected, (3) scrap usage is increasing, and (4) rising backwardation alongside falling physical premiums is a sign that actual demand is lower than perceived.

The fourth point above needs some explaining. In a tight market, limited stockpiles lead to backwardation – people paying more for metal today than in the future. Backwardation should only happen when the current physical market is very tight. If that’s the case, there should also be high physical premiums, which are extra amounts paid for actual metal now (rather than paper metal).

What weird about nickel is that premiums are down sharply, from $200 per tonne a few months ago to negative $50 per tonne today. It’s the first-time premiums have ever gone negative in China and something that is very rare across the metals complex. European nickel briquette premiums are also down 80% in recent months.

The dark blue line below shows physical premiums. The light blue line shows the difference between current and three-month nickel prices; a positive Cash-3M is backwardation.

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This suggests:

· The physical market is not that tight

· Speculation in the paper market is driving the price

· Speculation is not simply investors; nickel users and producers are also playing games (stockpiling) to boost the price. When they stop, the price will lose ground rapidly.

The Bottom Line

Nickel may or may not continue its bull run from here. The fact the physical premiums are so low when prices have gained so much and the paper market is in backwardation is definitely concerning, enough that I am not ready to enter the space right now. The fact that nickel spot price recently stepped back almost 10% reinforces my outlook.

However, in the medium and long term this is a market that has good opportunity. Stainless steel demand growth is reliable. The battery space will need more and more Class I nickel with each year. The pipeline of new projects is very limited, especially if you (like me) see China struggling with its nickel laterite output mines and HPAL facilities.

I might be wrong and my hesitation on entering now may mean missing out on near term upside, but such decisions are common in this sector!

Source: https://www.kitco.com/commentaries/2019-10-28/A-nickel-for-your-thoughts.html

SPONSOR: Tartisan Nickel (TN:CSE)  Kenbridge Property has a measured and indicated resource of 7.14 million tonnes at 0.62% nickel, 0.33% copper. Tartisan also has interests in Peru, including a 20 percent equity stake in Eloro Resources and 2 percent NSR in their La Victoria property. Click her for more information

Nickel and palladium surge on the back of supply constraints

• Nickel price has recently surged reaching US$18,000/t
• This is mostly due to the Indonesian nickel ore export ban to commence January 2020, as well as the Philippines indefinitely suspending nickel mining in southern Philippines (27% of overall Philippine nickel ore exports are from this area).

Matthew Bohlsen

The past few years have generally been tough for the miners, especially for investors that joined the electric vehicle (EV) metal miners boom at its first peak (January 2018). However, all is not lost. For nimble investors, there are some great gains to be made when metal prices spike, but you need to be not too late to the party. Right now two metals are rising fast on supply constraints and strong demand. Furthermore, they should continue to do well for some time. In many cases, the associated miners have been slow to reflect the gains as investor sentiment has been weighed down by the trade war. This leaves some incredible buys for those willing to invest.

Those two metals are nickel and palladium.

Nickel

As we can see below the nickel price has recently surged reaching US$18,000/t. This is mostly due to the Indonesian nickel ore export ban to commence January 2020, as well as the Philippines indefinitely suspending nickel mining in southern Philippines (27% of overall Philippine nickel ore exports are from this area).

Nickel supply reductions from the two largest nickel producing countries (Indonesia and Philippines represent 45% of global nickel supply) and an EV led demand surge are combining to cause nickel deficits and a nickel price spike, as shown below.

Add in resilient nickel demand and soon a surge in EV related demand and you have the recipe for a nickel boom.

Nickel 5 year price chart

EV related demand for class 1 nickel is set to surge more than tenfold from end 2018 to 2025, or increase from 36,000 tonnes in 2018 to 350,000-500,000 tonnes by 2025. In a 2 million tonne total nickel market, a 500,000 tonne increase represents a 25% increase just from the EV boom.

LME nickel inventory levels fell last week the most in 40 years

Just last week LME inventory levels fell the most in 40 years, as China’s Tsingshan Holding Group Co. bought 25,000 tonnes of LME nickel. Apparently a further 75,000 tons of metal are scheduled to be delivered out soon. That could send LME nickel below 50,000 tonnes and panic the market causing nickel prices to surge even higher.

Palladium

Palladium metal prices have doubled the past year and a half on the back of strong demand for palladium used in catalytic converters. The price is now over US$1,700/oz, significantly higher than gold at US$1,492/oz.

Palladium 5 year price chart

Europe is reducing emissions targets in 2020, 2025, and 2030 and other countries will follow. This means more palladium will be needed in catalytic converters. As reported by Reuters, Morgan Stanley recently stated that starting 2020 in China each vehicle will need to contain around 30% more palladium, platinum and rhodium. Some analysts are already forecasting US$2,000/oz palladium.

The only caveat here is if we see very rapid electric vehicle take up and hence less internal combustion engine (ICE) vehicles then demand could stall or even reverse. However, this should still be several years away given the electric car market share globally is still only at 2.3%. Hybrid EVs use both palladium and nickel. Note also that platinum can be used to substitute for palladium but it is not so easy and the cycle to replace can be costly and take ~2 years.

Source: https://investorintel.com/sectors/gold-silver-base-metals/gold-precious-metals-intel/nickel-palladium-surge-back-supply-constraints/

• Company has engaged Aster Funds Ltd, Toronto, Ontario, to conduct a satellite-based long wave infrared thermal mineral scan and a synthetic aperture radar survey of the Sill Lake Pb-Ag property, Vankoughnet Twp. Ontario.
• Aster Funds Ltd provides spectral analysis surveys and synthetic aperture radar surveys to exploration companies

TORONTO, ON / October 9, 2019 / Tartisan Nickel Corp. (CSE:TN)(OTCPINK:TTSRF)(FSE:A2D) (“Tartisan”, or the “Company”) is pleased to announce that the Company has engaged Aster Funds Ltd, Toronto, Ontario, to conduct a satellite-based long wave infrared thermal mineral scan and a synthetic aperture radar survey of the Sill Lake Pb-Ag property, Vankoughnet Twp. Ontario.

Aster Funds Ltd provides spectral analysis surveys and synthetic aperture radar surveys to exploration companies principally active in Canada, Latin America, and Australia. The spectral analysis survey provides a property-wide distribution of up to 16 mineral and rock species consistent with the Sill Lake deposit model, while the synthetic aperture radar survey provides a distribution of surface and shallow buried conductors similar to what an airborne electromagnetic survey would generate.

Tartisan Nickel CEO Mr. Mark Appleby said, “we are going to test Sill Lake with the Aster Funds Ltd technology, which should give us some very good insights into the extent of mineralization on the property. This would focus detailed exploration on targets that would deliver shareholder value in a discovery or definition context.”

Tartisan Nickel Corp. common shares are listed on the Canadian Securities Exchange (CSE:TN, US-OTC-TTSRF, FSE A2D). Currently, there are 100,403,550 shares outstanding (103,103,550 fully diluted).

For further information, please contact Mr. D. Mark Appleby, President & CEO and a Director of the Company, at 416-804-0280 ([email protected]). Additional information about Tartisan can be found at the Company’s website at www.tartisannickel.com or on SEDAR at www.sedar.com.

Jim Steel MBA P.Geo. is the Qualified Person under NI 43-101 and has read and approved the technical content of this News Release.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

The Canadian Securities Exchange (operated by CNSX Markets Inc.) has neither approved nor disapproved of the contents of this press release.

Investment Highlights

• Kenbridge property has a measured and indicated resource of 7.14 million tonnes at 0.62% nickel, 0.33% copper
• 17.5 (21.8 fully diluted) percent equity stake in Eloro Resources and 2 percent NSR in their La Victoria property

Kenbridge Ni Project (ON, Canada)

• Advanced  stage  deposit  remains open  in  three  directions,  is  equipped with a 623m  deep  shaft  and  has  never  been  mined. 
• Preliminary  Economic Assessment completed and updated returned robust project 
  economics and operating costs including  a  NPV  of  C$253M  and  cash costs of US$3.47/lb of nickel net of  copper credits.
• Plans for Kenbridge include updating PEA, advancing the project through to feasibility and exploring the open mineralization at depth

FULL DISCLOSURE: Tartisan Nickel Corp. is an advertising client of AGORA Internet Relations Corp.

SPONSOR: Tartisan Nickel (TN:CSE)  Kenbridge Property has a measured and indicated resource of 7.14 million tonnes at 0.62% nickel, 0.33% copper. Tartisan also has interests in Peru, including a 20 percent equity stake in Eloro Resources and 2 percent NSR in their La Victoria property. Click her for more information

Batteries Juicing the Nickel Market: LME Nickel Sulfate Contracts in 2019?

• Recently announced LME nickel sulfate contracts under consideration are a strong indication that the nickel sulfate market and upstream nickel sulfide market are facing considerable growth
• Price of nickel has climbed nearly 60 percent since mid-2015 on an improved nickel demand forecast, mainly from the steel sector

Annual sales of electric vehicles are expected to climb from 1.1 million in 2017 to 30 million by 2030. Each one requiring a battery chock full of base metals, especially lithium, cobalt and nickel sulfate. The price of nickel has climbed nearly 60 percent since mid-2015 on an improved nickel demand forecast, mainly from the steel sector. The surging demand for electric vehicles (EVs) and in turn base metals such as nickel is expected to push those prices up further.

The impressive growth outlook for battery materials has prompted the London Metals Exchange (LME) to consider offering a suite of battery materials futures contracts in 2019 — including lithium, cobalt and nickel sulfate — to better take advantage of the booming EV market. The fact that the LME is exploring the launch of a nickel sulfate premium contract along with two of the other most prominent battery materials bodes well for this market and for the miners who produce the metal, as well as valuation for miners with compliant nickel resources in the ground.

Electric vehicle demand and nickel prices

Nickel’s strength and non-corrosive properties make it the ideal alloying metal in the manufacturing of stainless steel used in a broad range of industries including automotive, construction, household appliances and machinery. This sector accounts for nearly 70 percent of global nickel demand and stainless steel is expected to be a US$133.8 billion market by 2025, according Grand View Research.

Nickel is also an excellent conductor of electricity and the metal has long been a critical component in batteries of small electronic devices. Presently, the increasing electrification of the auto industry represents an emerging growth market for nickel. While much of the fervor around the EV batteries materials market has revolved around lithium and cobalt, the base metal turned energy metal is now the primary metal by weight in the cathode of many of today’s EV battery types including Lithium Nickel Cobalt Aluminum Oxide (NCA); Lithium Nickel Cobalt Manganese Oxide (NMC); and Lithium Manganese Oxide (LMO). For example, the Panasonic lithium-ion batteries Tesla uses in their vehicles reportedly have a cathode composition of 85 percent nickel, 10 percent cobalt and 5 percent aluminum.

“Nickel is an interesting one, and a question we are getting more and more at Benchmark,” Caspar Rawles, Benchmark Mineral Intelligence analyst, told Investing News Network in an email. Near-term nickel demand from the battery sector has been a small percentage of the total market and hasn’t had a significant impact on current pricing. In fact, out of 2.2 million tonnes of total demand in 2017, only 60,000 tonnes came from the battery sector. However, Rawles notes that “as the uptake of electric vehicles intensifies the numbers start to get quite staggering, aided by the move to high nickel low cobalt cathodes (NCM 811 primarily). We see demand exceeding 500,000 tonnes by 2026 and moving to over 1,000,000 by 2029-2030.”

By itself, this volume of demand paints compelling picture for future nickel pricing. But, there are price positive indicators on the supply side as well. “The battery industry can only use class 1 nickel (the most pure form with around 1 million tonnes produced each year, which is deliverable to the LME) means increasing supply will be difficult due to the lack of sulfide deposits globally,” add Rawles.

A tale of two nickels

The level of demand for nickel from the battery industry stands in the shadow of the much larger stainless steel market, however EV batteries may pose a greater supply challenge to the global nickel industry. The majority of the world’s nickel production is in the type preferred by the steel manufacturing industry: ferronickel, also known as nickel pig iron (NPI), which is not suitable for making EV battery cathodes. For that, manufacturers need battery-grade nickel sulfate, a nickel product derived from high-grade nickel sulfide deposits. Only about 10 percent of global nickel production is nickel sulfate. While it is possible to convert NPI to battery-grade nickel, the process is not at all economically viable.

Nickel sulfate supply strained under increased demand

Further complicating the supply picture is the scarcity of nickel sulfide projects either in production or development following the depressed price environment in the first half of this decade, and new discoveries have proven hard to come by.

“The problem for the nickel industry is it’s not a macro issue; it’s not an issue where we’re going to run out of nickel, but the specific nickel that’s required,”  Jon Hykawy, president of Stormcrow Capital, told INN at the 6th International Nickel Conference. “The specific chemistry and the specific purity that’s required for batteries is likely going to put a strain on the supply chain.”

A market in divergence

Supply and demand levels are already beginning to diverge, which is bound to translate to more upward pressure on nickel prices. This imbalance has also been tied to a divergence in prices for NPI and nickel sulfate, leading to the opportunity held in the proposed LME nickel sulfate contracts.

LME nickel sulfate contracts: No longer a niche product

The LME does have an existing nickel futures contract, the price of which remains linked to the NPI market because up until fairly recently, nickel sulfate has remained a niche market. “Electric vehicles are clearly the growth story for our industry,” said LME CEO Matthew Chamberlain, who believes separate LME nickel sulfate contracts will keep prices relevant to both the stainless steel and battery sectors. Along with other battery market metals lithium and cobalt, the nickel sulfate contract would be cash-settled against a third-party price index. “It would mark a change in tack for the LME, which has traditionally focused on commodity-grade refined products,” noted Bloomberg.

Impact on nickel miners and nickel investors

The underinvestment in nickel sulfide projects and the growing demand for battery metals are creating an ideal market environment for nickel sulfide miners. So, what would LME nickel sulfate contracts mean for investors in the nickel mining sector?

“As nickel sulfate is the ideal precursor for key elements of lithium ion battery cathodes, the creation of a future LME nickel sulfate contracts will provide investors with stable futures pricing for all manner of nickel sulfate applications,” Mark Appleby, President and CEO of Tartisan Nickel (CSE:TN) told Investing News Network. “This will allow the nickel sulfide resources held by companies like Tartisan Nickel to be fairly valued as an upstream supplier to principal battery metals applications with the best demand growth potential based on the EV revolution.”

Tartisan owns a nickel sulfide-copper-cobalt property in Ontario, Canada. The Kenbridge property, near Kenora, has a measured and indicated resource of 7.139 million tonnes at 0.62 percent nickel and 0.33 percent copper. The company is looking to advance the project through feasibility.

The surging growth in demand for battery-grade nickel and the divergence between ferronickel and nickel sulfate prices will no doubt have an impact on reshaping the nickel mining industry toward nickel sulfide projects. Even the major global miners are seeing the opportunity. BHP Billiton Ltd., one of the world’s top nickel producers, is switching output at its Nickel West project in Australia from briquettes to sulfate in order to gain more exposure to the EV battery industry.

Looking forward

Nickel has one of the highest-growth demand outlooks in the metals sector, a trend which analysts expect to continue well into the next decade. Both rising prices and a shifting demand landscape are creating a new growth market for investors looking to capitalize on the opportunities presented by the emerging market for battery materials.

Source: https://investingnews.com/innspired/lme-nickel-sulfate-contracts-2019/

SPONSOR: Tartisan Nickel (TN:CSE)  Kenbridge Property has a measured and indicated resource of 7.14 million tonnes at 0.62% nickel, 0.33% copper. Tartisan also has interests in Peru, including a 20 percent equity stake in Eloro Resources and 2 percent NSR in their La Victoria property. Click her for more information

Most base metals tread water, while nickel remains buoyant

• Nickel sold off to $16,895 per tonne on Tuesday, before running up to close near the days’ highs at $17,365.

By: William Adams

Weak manufacturing purchasing managers’ index (PMI) data out across major economies on Tuesday October 2 dampened the tone across most markets, with money rotating into havens.  That said, the situation in the United States is still looking mixed – the IHS Markit manufacturing PMI edged up to 51.1, from 51, so still shows expansion, while the ISM reading fell to 47.8, from 49.1.

In addition, US total vehicle sales rose to an annualised 17.2 million units in September, up from 17 million units in August. Year to date, vehicle sales are running at a rate of 17 million units, compared with 17.1 over the same period last year.

• With China on holiday volume on the LME has been light with 2,030 lots traded as of 06:48 am London time, compared with a more normal level of around 6,000 lots
• Asian equities are weaker this morning, led by a 1.5% fall in Australia’s ASX 200

Base metals
Apart from three-month LME tin prices that are down 1.1% at $16,220 per tonne, the base metals complex is little changed this morning, with copper up 0.2% at $5,698.50 per tonne and with nickel unchanged at $17,370 per tonne. Nickel sold off to $16,895 per tonne on Tuesday, before running up to close near the days’ highs at $17,365.

With China closed and with option declaration this morning, trading could remain quite volatile – it seems odd that yesterday’s generally poor PMI data did not have more of a negative impact on base metal prices, especially as equities fell and haven assets rallied.

Precious metals
The spot gold price, having broken lower on Monday to set a low at $1,459.18 per oz on Tuesday, ended the day at $1,478.65 as concerns over the state of the global economy intensified. Silver continues to follow, as has platinum and even palladium has turned back from record highs and was last at $1,649.30 per oz.

Wider markets
Spot Brent crude oil prices are consolidating above Tuesday’s low at $58.38 per barrel and were recently quoted at $59.39 per barrel.

In line with the pick-up in haven demand the yield on benchmark US 10-year treasuries has weakened – it was recently quoted at 1.6529%, compared with 1.7031% at a similar time on Tuesday. The German 10-year bund yield has also eased and was recently quoted at -0.5500%, compared with -0.5440% on Tuesday.

Asian equities were weaker on Wednesday: The Nikkei was down 0.49%, the Hang Seng down -0.19%, the ASX 200 -1.53% lower and the Kospi fell1.95%.

This follows a stronger performance in Western markets on Tuesday, where in the US, the Dow Jones Industrial Average closed down by 1.28% at 26,573.04; in Europe, the Euro Stoxx50 closed down by 1.43% at 3,518.25.

Currencies
The dollar index is consolidating around 99.24, after its push up to fresh multi-year highs at 99.67 on Tuesday – it was last this high in May 2017 and the peak in 2017 was 103.82.

The Australian dollar (0.6704) and sterling (1.2265) remain on a back footing, while the yen (107.76) is consolidating and the euro (1.0924) is off recent lows.

Key data
Wednesday’s economic data includes data on Japan’s consumer confidence that dipped to 35.6 in September, from 37.1 in August. In Europe Spanish unemployment change climbed 13,900 in September, which was better than the 37,600 expected, and later there is data on UK construction, US ADP non-farm employment change and crude oil inventories.

In addition, Federal Open Market Committee John Williams is speaking.

Today’s key themes and views
Against the backdrop of weak economic data it is hard to be bullish for the base metals – for those metals that have been range bound, we expect more sideways trading, but those that have been more directional on the upside, notably nickel and lead, may struggle to hold on to their gains – this is especially so for nickel given Indonesia is likely to ramp up exports ahead of the ban in nickel ore exports that starts in 2020. For the base metals as a whole, we think the overall direction will be driven by how the next round of US/China trade talks go – until then economic data is likely to set the tone.

We have viewed gold as being vulnerable in the short term because it was looking toppy on the charts, but it was interesting that despite breaking lower on Monday, prices did not stay down for long. That said, they are still looking vulnerable. There are still many global issues to be settled and until they are, demand for havens is likely to remain high but the market may now be in limbo until the trade talks start to set the direction again.

Source: https://www.metalbulletin.com/Article/3896910/MORNING-VIEW-Most-base-metals-tread-water-while-nickel-remains-buoyant.html

SPONSOR: Tartisan Nickel (TN:CSE)  Kenbridge Property has a measured and indicated resource of 7.14 million tonnes at 0.62% nickel, 0.33% copper. Tartisan also has interests in Peru, including a 20 percent equity stake in Eloro Resources and 2 percent NSR in their La Victoria property. Click her for more information

Nickel climbs as stainless steel producers prepare for Indonesia ban

• Nickel prices climbed on Friday as stainless steel producers bought supplies ahead of a Chinese holiday and an Indonesian nickel ore export ban that could create shortages.
• Top supplier Indonesia’s plan to ban exports of nickel ore has been brought forward by two years to Jan. 1, 2020, and the Philippines, the world’s second-biggest ore producer, could suspend five mining companies at the end of this year.

By: Eric Onstad

LONDON — Nickel prices climbed on Friday as stainless steel producers bought supplies ahead of a Chinese holiday and an Indonesian nickel ore export ban that could create shortages.

Top supplier Indonesia’s plan to ban exports of nickel ore has been brought forward by two years to Jan. 1, 2020, and the Philippines, the world’s second-biggest ore producer, could suspend five mining companies at the end of this year.

“There have been some anecdotes of stainless mills restocking nickel and that has been positive,” said analyst Nicholas Snowdon at Deutsche Bank in London.

Nickel is mostly used as an alloy in the production of stainless steel.

“Across most sectors, in the week before the Golden Week holiday, you’ll invariably see a bit of raw material restocking, so we have elements of that in nickel alongside the broader potential restocking as we head into the (Indonesia) ban application.”

China celebrates its National Day Golden Week holiday in early October.

Benchmark nickel on the London Metal Exchange gained 2.6% to $17,725 a tonne in official open-outcry trading, on track for its biggest one-day gain in three weeks.

* CHINA RATE CUT: Base metals also gained support from China cutting its one-year benchmark lending rate for the second month in a row on Friday.

* NICKEL INVENTORIES: Nickel stocks in warehouses monitored by the Shanghai Futures Exchange slid 13.6%, weekly data showed on Friday.

* NICKEL SPREAD: The premium of LME cash nickel over the three-month contract climbed to $150 a tonne, near the recent decade high of $163, indicating near-term tightness.

* MARKET DEFICIT: The global nickel market deficit widened to 6,700 tonnes in July from a revised 2,700 tonnes in the previous month, the International Nickel Study Group (INSG) said on Thursday.

* ALUMINIUM OUTPUT: LME aluminum, untraded in official rings, was bid down 0.6% at $1,790 a tonne after data showed that global primary aluminum output rose to 5.407 million tonnes in August from a revised 5.404 million tonnes in July.

* COPPER DEMAND: Fitch Solutions cut its average price forecast for copper to $5,900 a tonne this year and $5,700 in 2020, from previous views of $6,300 a tonne and $6,600 a tonne respectively.

“A drop in Chinese demand has loosened the global (copper) market, while sentiment continues to worsen,” Fitch said in a note.

LME copper was bid up 0.3% at $5,804 a tonne but remained on course for a 2.6% drop over the week, which would mark its steepest weekly fall since the week ended Aug. 2.

* PRICES: LME three-month zinc was bid down 0.2% in official activity at $2,308 a tonne, lead gained 0.9% to trade at $2,114 and tin slipped 0.3% to trade at $16,400.

* For the top stories in metals and other news, click or (Additional reporting by Tom Daly in Beijing; editing by David Goodman and Jason Neely)

Source: https://business.financialpost.com/pmn/business-pmn/nickel-climbs-as-stainless-steel-producers-prepare-for-indonesia-ban