Post by
Sanguinity on Jan 30, 2024 12:37pm
What the bleepin' heck is goin' on in the nickel market?
https://www.abc.net.au/news/2024-01-26/examining-the-drastic-downturn-in-nickel-and-lithium-prices/103388902
Forecasts of huge demand lead to sudden price hikes that ultimately feed a surge in exploration and production. 
Until there's a glut.
That has apparently been the case for lithium and nickel – the supply simply outgrew the rise in demand.
While the uptake of EVs is increasing, the pace has been slower than anticipated.
Indonesia's cheap nickel is also adding fuel to fire.
The nation's ban on nickel ore export in 2020 led to investment pouring into its domestic refineries.
Indonesia's low labour and environmental standards mean operational costs are much cheaper than Australia's – so local producers must sell their ethical credentials to compete with their South-East Asian rivals.
Let's cut to the chase: what does all this mean for our beloved nickel producer, Sherritt.
Think of a very small boat, leaking, over-burdened with executive payslips, cutoff from the world's largest consuming market. And its headed right into a storm that the largest players on the planet can't keep afloat and are shuttering their operations.
Sherritt doesn't have a chance and is likely going to tell us so in its dance-of-the-seven-vails in its February reveal. I anticipate it plunging by double digits percentages - perhas exceeding 50% drop.
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