China has continued to show its dominance in the global battery supply chain by sending the nickel market into overdrive after stainless steel producer Tsingshan Holding Group announced it would be able to provide a new flow of nickel matte from its Indonesian operations.
Last week, Tsingshan said it would be able to provide 100,000 tonnes of nickel matte – a material converted from nickel pig iron – to two major Chinese battery makers, Huayou and CNGR, within a year from October, instantly easing market fears of a shortage in nickel amid a boom in demand for electric vehicles.
Nickel prices reversed immediately, falling 8.5 per cent on the day of the announcement – the largest single day drop since December 2016 – putting a halt to the climb in prices which had reached a record six-year high a few weeks earlier.
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