March 5 2021 Nickel Update
It was a crazy week for nickel & trucking. Nickel peaked during the 3rd week of February at $8.84/lb. As of today it is down to $7.67/lb. Below please find the main drivers:
- Base Metals lower as supply fears ease. LME inventories had large inflows.
- Major producer Norilsk Nickel announced plans to stabilize water inflows at one of its biggest mines in the Russian Artic by March 9th.
- Tsingshan Holding Group announced they have discovered a new way to make nickel for batteries Nickel prices plunging 7.4% on the prospect of breaking a crucial production bottleneck in EVs.
- March surcharge was based on a $8.26/lb. average. If nickel stays in the $7.67/lb. range there will be some relief but not a substantial amount. Also chrome is still strong. Please see below:
Surcharge estimate for April:
- As of today surcharges still show a slight increase for April. If nickel stays in the current range you will see that average come down to numbers closer to the February Surcharge.
- Chrome is now adjusted on a quarter basis. Chrome has remained strong so we are estimating a .03/lb. to .05/lb. increase for the Chrome component.
- This continues to be a major obstacle. Flat bed rates are almost double.
- Common carriers are limiting volumes because of the influx of orders as people shift away from flat beds.
- Terminals are overbooked causing delays.
- Please plan on extra time and cost until things return to normal.
Stay Busy in 2021!
President & CEO