Metalshub Launches New Nickel Premium Index
Düsseldorf, 2 May 2022 – Metalshub is pleased to announce the launch of a new nickel briquette premium index, which will provide users with unique market intelligence based on real transactions.
The index is available :
The weekly European Duty Paid Nickel Briquette Premium Index reports at what premium (or discount) over the London Metal Exchange (LME) price for nickel, buyers and sellers conclude transactions for prompt delivery.
The introduction of this new index will provide reliable information on the premiums that are being paid over the global LME price in the European metals industry. The index is calculated based on transactions conducted on the Metalshub platform.
This greater transparency on European premium prices comes at a time when buyers and sellers of nickel for immediate delivery face significant pricing uncertainty for ready metal, as a number of factors have converged to increase volatility:
Structural shortages in the physical market have reduced the flow of metal. Global nickel demand rose by 8% in 2021, as the world emerged from the pandemic, but supply did not keep pace, seeing LME on-warrant stocks fall from 264kt in April 2021 to 73kt in April 2022, with off-warrant stocks hitting an all-time low of 896 tonnes in February.
Already stretched, supply has been further impacted by geo-political factors, as shipping routes and ports have effectively been blocked as a result of the war. Following Russia’s invasion of Ukraine in late February 2022, the US, EU, and UK imposed severe economic and financial sanctions on Russia’s banking sector, industry, and foreign trade. Russia is the third largest nickel producer globally, accounting for 13% of global trade, and makes up about 50% of the EU’s nickel imports.
Disruption to the LME nickel market against an already challenging supply and logistical backdrop.
Robin Martin, LME Head of Market Development, commented:
“We are delighted to be working with Metalshub and welcome the introduction of this premium index based on trading activity on their platform. Robust and transparently derived European nickel premiums contribute to the development of this market and are of immediate relevance at this time of heightened volatility."
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Metalshub is one of the pioneers of digital transformation in the metals industry. The software start-up was founded in 2016 in Düsseldorf by Dr. Sebastian Kreft and Dr. Frank Jackel with the mission to connect companies in the industry with a digital platform. Digital supply chains can help reduce costs and CO2 emissions. More than 1,300 companies are already using Metalshub, including more than 300 steel mills and foundries that have digitised their purchasing processes with Metalshub. Since the launch of the platform in 2017, more than 1 billion USD in trading volume was concluded through Metalshub.