Strike at vale nickel mines in Canada

The strike in the Canadian nickel mining town of vale, the global mining leader, triggered the price of nickel materials in North America to reach a two-year high. In addition, the nickel inventory of London exchange (LME) has dropped to a new low in more than a year, which led to the shortage of raw materials for this kind of battery.
Sudbury, Canada is one of the world’s major nickel producers. Nickel ore is a metal raw material for aviation, electronics and nuclear industry. Due to the strike movement of United Steelworkers local 6500, its production work has been stagnated since June 1 this year.
Colin Hamilton, an analyst at BMO capital markets, said the nickel (battery grade) metal business has been facing challenges since early 2021, and the material supply to end customers may be more limited than expected.
As a key component of rechargeable batteries for new energy vehicles, battery grade nickel helps to improve the energy density of batteries and allows manufacturers to reduce the use of cobalt. Cobalt is more expensive to mine than nickel, and the supply chain is opaque.
According to the forecast of foreign media, the battery grade nickel market will be in a tight supply state in the next two to three years, and the normal supply can be resumed as soon as 2024.
Adrian Gardner, chief nickel market analyst at wood Mackenzie, said the strike was not the main reason for the rise in nickel prices, but it would be the main driving force for the continued rise in nickel prices in North America.
He also pointed out that at present, Vale is not optimistic about the solution to the strike, and the trade union has twice rejected the salary proposal proposed by the management this year. Labor disputes could last for months before an agreement is reached. Vale had a year long strike between 2009 and 2010.

Leave a Reply

Your email address will not be published. Required fields are marked *