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Highlights
- Nickel prices hit seven-year highs on Friday.
- Nickel is used as an important ingredient for steel production.
- The Indonesian government wants to impose an export tax on nickel products.
Nickel prices surged to seven-year high levels on Friday due to supply concerns followed by the Indonesian government is looking at taxes on the ingredients used in steel manufacturing. The prices of metal used heavily in the production of electric vehicle batteries have touched US$20,705 per tonne during the last week, the highest since May 2014.
The terrific rise in nickel prices is primarily associated with its robust demand and tight supply. However, the idea of the Indonesian government to impose a tax on the export of the metal has additionally fuelled the prices of nickel. The country is exploring the possibility of levying an export tax on nickel products with less than 70% nickel to boost the country's domestic processing industry.
Bottom Line
Nickel prices reached seven-year highs on the back of strong demand and a tight supply of the metal. The prices were additionally boosted by Indonesia's move to impose taxes on nickel export.
