Analysts have cited the recent high prices for nickel on the Indonesia export ban along with the uncertainty of Eastern Europe’s political situation. This past week, nickel prices hit a two-year high to peak at more than $9.50 per pound on Tuesday. That’s approximately $2 higher than two months ago and roughly $3.50 higher than six months ago.
Terry Ortslan, nickel analyst for the Montreal-based TSO and Associates, maintains that China is one of the top nickel-producing countries but has relied on deposits in Indonesia, and with the recent export ban, production in China will drop unless nickel is sourced elsewhere or the laws are changed. Meanwhile, producers all over the world, but especially in North America, have had to search more than usual to secure nickel.
This has had a huge impact on the town of Sudbury, Ontario in Canada because of the many nickel mines in the area, which sustain the local economy. For example, Vale and GlencoreXstrata each employ approximately 4,000 and 1,000 (respectively) in the city. While the mill demand for nickel remains strong in the United States, there will be a spike in nickel demand and prices, which will keep the workers in nickel-rich areas like Sudbury busy for the foreseeable future.