Why is nickel in high demand?
Analysts at Macquarie Bank say a slowing Chinese economy could bring about a price hike in base metals such as nickel, copper and zinc.
“A small increase in demand from China is likely to lead to raw material shortages and prices will increase. In this respect, we see copper, nickel and zinc as the most attractive opportunities within our investment universe,” said Macquarie analysts in a 2015 report.
Forecasters say nickel could experience a similar surge to materials like alumina, lithium and graphite because of its ties to the electric vehicle industry.
In September 2017, Anglo Pacific Group PLC (LON:APF) entered into a royalty agreement with Brazilian Nickel Ltd (Brazilian Nickel) to acquire an initial 1% gross revenue royalty over the Piauí nickel-cobalt project.