A Tale of Two Nickels: Global Palladium Fund Highlights Risk of High-Grade Nickel Deficit in 2022
Dec 20, 2021
GPF logo
Global Palladium Fund, the specialist provider of physical metal Exchange Traded Commodities (ETCs), has said it anticipates a global Nickel surplus of 59KT in 2022, though notes this will be concentrated in low-grade nickel pig iron (NPI) and depend heavily on an expected increase in supply from Indonesia materialising.
The impact of COVID-19 halted the launch of significantly expanded NPI production capacity in Indonesia this year, resulting in a nickel market deficit likely to be around -150KT for 2021. If this increased capacity can be brought online, it would represent supply growth of 20% year-on-year.
A surplus would be a particularly welcome outcome for stainless steel manufacturers, which rely on nickel for production, as well as makers of electric vehicle batteries, though this requires higher-grade nickel for which the supply outlook is less certain.
"All eyes are once again on Indonesia, and whether it can ramp up capacity to meet the strong demand for nickel likely to continue next year, though many in the market remain concerned about the risk of being overly reliant on one country," explains Alex Stoyanov, Global Palladium Fund CEO.
"Next year will really be a tale of two nickels, as for high-grade nickel, the situation is looking more finely balanced, with less prospect for near-term supply increases, and the likelihood of deficit growing as demand for electric vehicle batteries in particular increases. Looking further ahead, the most pronounced imbalance will be for low-carbon nickel, as appetite is likely to increase dramatically while supply will necessarily remain constrained," adds Timothy Harvey, Head of Business Development for Global Palladium Fund.
The availability of low-carbon nickel, produced using renewable energy and sometimes combined with carbon offsetting, is a relatively new development, but demand from investors and industrial consumers is growing rapidly. Longer term, a greater scrutiny on the carbon footprint of metals from different sources will also have implications for Indonesia's production, where emissions tend to be higher.
The current industry average sees 13 tonnes of CO2 emitted for every tonne of nickel produced, though this can go as high as 160 tonnes of CO2 for some production. The nickel used in GPF's physical nickel ETCs is produced by Nornickel, which has an average footprint of 8 tonnes CO2 per tonne of nickel.
Global Palladium Fund
The Global Palladium Fund was created to make the world's precious, base and rare-earth metals accessible to everyone and to advance the development of world-changing technologies in essential areas such as aerospace, electronics, and the automotive. GPF is proud to be supported by Nornickel, the world's largest and cleanest miner, headed by Vladimir Potanin.
Its ESG-compliant products are in high demand across the globe and are critical for net-zero transformation. GPF ETCs are listed on LSE, Xetra, Borsa Italiana, SIX and Vienna stock exchanges.
Please visit: www.gpf.global
Contact: Maria Dzenisa [email protected]
Press Release Service by Newswire.com
Original Source: A Tale of Two Nickels: Global Palladium Fund Highlights Risk of High-Grade Nickel Deficit in 2022
Recommended
YOUR NEWS, OUR NETWORK.
Do you have Great News you want to tell the world?
Be it updates about your business or your community, you can make sure that it’s heard by submitting your story to our network reaching hundreds of news sites across 6 verticals.
More News
Labour council leader who compared St George's flag campaigners to paedophiles survives no confidence vote again
Jeremy Newmark, leader of Hertsmere Council, was able to continue leading his Labour-Liberal Democrat coalition after a vote to put a confidence motion on the agenda ended in a tie.
Russia plotting to deploy sinister new AI weapon to meddle in US elections, officials warn just WEEKS before midterms
Russia is accused of launching a fresh online influence campaign targeting Americans ahead of November's midterm elections.
Prince William launches annual Earthshot Prize as Harry attends Invictus event amid ongoing row over Earl Spencer's Diana memoir
The heir to the throne unveiled this year's finalists on Friday for the environmental award, which recognises the contributions of winners towards repairing the planet.
ROBERT HARDMAN: Will the last millionaire to quit socialist Britain for sunny, low-tax, Thatcherite Greece please turn out the eco-lightbulbs
The country has undergone a Thatcherite process of national rejuvenation while it is Britain which is being dragged down by a benefits behemoth.
Seven Ivy League fraternity brothers accused of drugging and gang-raping student for four hours: Read sick messages sent to 'summon' group upstairs... and during attack
Seven frat boys have been accused of drugging and gang-raping a female student during a party at their Greek HQ. The allegations were made in a lawsuit filed on Wednesday.
Imperial War Museum embroiled in 'woke' row as staff insult veterans by claiming 'it's got nothing to do with war'
A retired soldier has revealed his shock at an exchange with a member of staff at the gift shop during a recent visit to the museum in south London .
Crime ring that smuggled dozens of Thai women into Britain and forced them into prostitution is jailed for a total of 23 years
Three men and a woman were convicted after an investigation into a string of brothels across London and Kent found dozens of Thai women who had their passports taken and were forced into prostitution.
Warren was sacked on the spot after he complained about his Hyundai i30 work car - but now council bosses must pay him a whopping $900,000: 'I'm gobsmacked'
The win comes after a two-year legal battle that drained his $180,000 superannuation and caused both himself and his wife to suffer breakdowns from the stress.
Medical files of up to 10,000 patients could be reopened amid probe into NHS breast cancer scandal that left 20 women with mastectomies they didn't need
A review of cases going back a decade found hundreds more came to harm after being treated at County Durham and Darlington Foundation Trust.
Cho, Rubio agree to work together for 'good' results from talks on US investment projects
WASHINGTON — The top diplomats of South Korea and the United States agreed to work together for "good" results from bilateral talks on the Asian country's investment projects in the U.S. during their meeting in Washington on Friday, the foreign ministry said. Foreign Minister Cho Hyun and U.S. Secretary of State Marco Rubio met at the State Department as the two countries have been in talks over the investment projects as part of efforts to implement last year's bilateral trade deal under which Seoul committed to investing $350 billion in the U.S. Seoul and Washington were initially expected to announce Korea's first investment project on Friday (Korea time). But the announcement has reportedly been postponed until next week after a related briefing to the National Assembly was delayed. "The minister and secretary agreed to make joint efforts to ensure that ongoing consultations related to strategic investment projects in the U.S. will yield good results, and to continue communication for the faithful implementation of both leaders' key agreements, including the Joint Fact Sheet (JFS)
Don Jr repays Russian oligarch for wedding party after Republican revolt over 'corruption'
Donald Trump Jr has repaid a Russian oligarch who reportedly spent hundreds of thousands of dollars for a lavish party in the Bahamas to celebrate his wedding.
MI5 chief faces contempt of court threat after spies lied about neo-Nazi agent who violently threatened girlfriend
Sir Ken McCallum faces the prospect of contempt proceedings after MI5 accepted it had provided false evidence to three courts.