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Source: Wall Street News
On Monday, London Nickel staged a roller coaster market,It soared 15% during the session, hitting the daily limit, reaching $30,960 per ton. However, since then, the increase in nickel prices has narrowed sharply, and the current intraday increase is 3.4% at $27,831/ton.
The huge earthquake of Lun Nickel is related to the “Oolong Incident” in the Indonesian factory of Zhongwei Co., Ltd.
On the same day, it was reported on the Internet that the Indonesian factory of Zhongwei Co., Ltd. exploded.There is video showing sparks and explosions.
Since then, according to the Securities Times, Zhongwei Co., Ltd. stated that after verification, the Indonesian plant of Zhongwei New Materials Co., Ltd. has been operating normally since the commissioning at the end of October 2022, and there has never been any explosion or other major safety accident. The video screenshots used in the report are not pictures of the company’s Indonesian project site.Therefore, the content of online reports is seriously lacking in basis and seriously deviates from the facts. Up to now, the company has been adhering to the principle of safety production first to carry out orderly production activities, and will continue to do a good job in the organization and supervision of safety production in daily production activities in the future.
The nickel futures market has been volatile this year. In the unprecedented short squeeze in March, nickel prices rose by more than 250% in just two trading days, pushing it to more than $100,000 per ton at one point. The LME also announced the suspension of all nickel contract trading for a week, which brought the short squeeze event to an end.
Since then, affected by factors such as the continued strength of the US dollar and the market’s fear of a global recession, nickel prices have once pared back all the gains since the beginning of the year, but they are still much higher than the levels of a few years ago.
The active trading of nickel futures is because it is one of the main metals for the ternary positive electrode of power batteries, and because of concerns about the supply of raw materials in the early days of the Russian-Ukrainian conflict. In the past two years, the new energy vehicle market has developed beyond expectations, superimposed on the trend of ternary high nickel, and the market demand for nickel has grown rapidly. China Merchants Securities previously predicted that from 2021 to 2025, the global demand for battery-grade nickel sulfate will increase from 220,000 tons to 720,000 tons, an increase of 227%.
Indonesia has the world‘s largest nickel ore reserves and production, and it is expected that the continued growth of reserves and production in the future will also come from Indonesia. Compared with the data released by the US Geological Survey from 2015 to 2020, the global reserves will increase by about 17 million tons in five years, and Indonesia’s production will increase by 16.5 million tons. Indonesia is also one of the countries with the most abundant laterite nickel ore resources in the world, and the main resources are concentrated in Sulawesi and nearby islands.
In May of this year, Zhongwei Co., Ltd. announced that the three Hong Kong subsidiaries signed the “Joint Venture Agreement for the Laterite Nickel Mine Smelting Project with an Annual Output of 40,000 tons of Nickel-Containing Nickel Metal (Indonesia)” with RIGQUEZA, and the three Hong Kong subsidiaries and RIGQUEZA Invested in the construction of laterite nickel ore smelting project with an annual output of 40,000 tons of high nickel matte nickel-containing metal in WedaBay Industrial Park (IWIP), Halmahera Island, Indonesia, with a total investment of 1.26 billion US dollars.
Not only Zhongwei Co., Ltd., in recent years, Chinese-funded enterprises have gone to Indonesia to build factories for nickel production. In May last year, Yiwei Lithium Energy and Huayou Cobalt Industry, Yongrui Holdings, Glaucous and LINDO signed the “Indonesia Huayu Nickel-Cobalt Laterite Nickel Mine Hydro-Smelting Project Joint Venture Agreement”. The parties will build an annual output of 120,000 tons in Indonesia. The laterite nickel ore hydro-smelting project of nickel and 15,000 tons of cobalt has a total construction investment of about 13.4 billion yuan.
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