2023 Year-End Nickel Price Review: A Must-Have Look!

At the start of 2023, Nickel prices had been on a steady climb since the start of the year. This followed a sharp decline the previous year brought on by the pandemic. However, as the year progressed, Nickel prices saw an increased demand from the automotive, aerospace, defense and electronics industries, This was mostly due to the accelerated drive towards the production of new EV materials, which require a larger end-use market of Nickel to restore supply-demand market balance. The first quarter of the year saw a steady climb in prices despite the low-hubble demand. This was attributed to the shortage in raw material supply caused by COVID restrictions, which hampered the production of the metal. By the end of the first quarter, prices had climbed nearly 21 percent since the start of the year. The second quarter of the year marked the peak of Nickel prices, with prices soaring 35 percent from the first quarter. This was due to a depletion in the global stockpiles, and consequent shortages. Additional demand came from the rising number of EVs, triggering the nickel producers to ratchet up production. However, the third quarter saw a decrease in prices as the market forces of demand and supply balanced out. This was accompanied by news of larger discoveries of primary nickel deposits and of larger production cuts. This stabilized prices for the most part, though there were bouts of volatility due to the carbon emissions conjectures. Despite the volatility, Nickel prices ended the year on a strong note. For the final quarter, prices had increased by 30 percent from the beginning of the year, largely due to the pickup in demand for EVs. This trend is expected to continue in the near future, as the long-term adoption of EVs as a transport option has been increasing steadily. Overall, 2023 has been a roller coaster ride for Nickel prices. While the demand has followed an upward trend for a majority of the year, the supply has been erratic, which resulted in bouts of volatility. Despite the potential road bumps, the long-term adoption of EVs and other related industries is expected to remain high, and the year-end closing price of Nickel is indicative of this. As we look towards 2024, Nickel prices are poised to remain steady and robust as the EV market gains further acceptance.