Nickel Slips Despite 40,000-Ton NPI Drawdown as EV Battery Demand Jumps 37%

1 articles · Updated · cruxinvestor.com · Jul 9

Nickel prices eased on a stronger US dollar and reports that Indonesia could expand mining quotas, even as supply-chain signals pointed to a tighter market.
A roughly 40,000-ton Nickel pig iron inventory drawdown into battery-grade matte narrowed NPI's discount to LME nickel to $150 a ton from about $250, indicating tighter availability beneath weaker headline prices.
Seasonal ore flows from the Philippines have added pressure in June and July, with Canada Nickel CEO Mark Selby saying Chinese buyers and short-sellers are using the peak supply window to push for more Indonesian ore quotas.
Battery-linked nickel demand rose 37% year to date through May while EV unit sales grew about 2%, a gap Selby tied to a 12% increase in average battery pack size as buyers shift toward larger vehicles.
Canada Nickel also signed an MOU with Germany's RWE to develop supply and trading arrangements for low-carbon nickel-chrome-magnetite products aimed at Europe's steel market.