By WANG Yong
In March, London Metal Exchange (LME) reduced waiting times and scrapped fees on trading nickel, a major shift for the exchange after the 2022 nickel crisis. For Chinese nickel companies, it is an opportunity to expand overseas and many have set their sights on LME listings.
Among these companies, Huayou Cobalt stands out. On June 9, Huayou registered for LME nickel delivery, the first to take advantage of the new policy. As more Chinese companies list on LME, the opportunities for Chinese nickel will increase.
Electrolytic nickel has been highly profitable with both China and Indonesia increasing capacity, and thereby contributing to the current supply glut. Consequently, the profit for refined nickel has declined from 70,000 yuan (US$9,700) per ton to more like 20,000 yuan per ton. However, this figure remains much higher than other nickel products that trade at no more than 10,000 yuan per ton.
