Equity Analysis /
United Kingdom

GB : Commodities - Overall - What’s a fair price for NICKEL?

    Tom Price
    Tom Price

    Analyst - Strategy, Accounting and Sustainability

    Contributors
    Yuen Low
    Ben Davis
    CGS-CIMB
    25 March 2022
    Published by

    A week ago, the LME’s nickel price reported a spectacular 3x-spike to US$100/k, before the platform suspended trading of the contract. A week later, the contract remains out of the market – awaiting what the LME describes as ‘operational procedures to effect a safe re-opening’ (16-Mar). Here, we explain what may have occurred, based on industry/market feedback. Popular investor question: what’s a reasonable opening price for nickel? We suggest one approach to determining a ball-park valuation for this high-value input for stainless steel + batteries nickel, when its LME contract is returned to market…