How Africa can benefit from global nickel price hike

Review and Mail Writer

The London Metal Exchange suspended the trading of nickel on Mar. 8 following a doubling in price in just two days to trade above $100,000 per ton.

Mar. 8’s price was four times the price a week earlier.

The price had been rising in recent weeks because of worries about supply chain disruptions due to Russia’s invasion of Ukraine, but it then surged as investors raced to cover margin calls against losing short positions.

Nickel is used in making products such as stainless steel, magnets, coins, and rechargeable batteries.

The crisis is likely to be felt all over the world, including Africa.

Countries may turn to Africa for nickel.

Russia is the third-largest supplier of nickel in the world, accounting for about two thirds of global production.

With concerns about sanctions on Russian nickel exports, nickel-producing countries in Africa may in the long term gain from outside countries buying the metal in the continent and investing in mining of the metal locally.

Already, countries such as the UK, US, Australia, Canada, and China have invested heavily in natural resources including cobalt, lithium , copper, iron, and gold in the continent.

Some of the largest nickel producers in Africa include Zambia, Zimbabwe, Madagascar, South Africa, and Côte d’Ivoire.

But there may also be a downside to the crisis for Africa.

One of the companies that is heavily exposed to the crisis, China’s Tsingshan Holding Group, has a huge investment in Zimbabwe.

The company, the world’s largest nickel producer, faces $8 billion in trading losses from the crisis as a result of short positions (expecting the price to go down).

Tsingshan is building Africa’s largest iron ore mine and steel plant in Zimbabwe, a project that is expected to be the country’s largest employer.

The losses could put this investment at risk.

Please follow and like us:

Leave a Reply

Your email address will not be published.

error

Enjoy our stories? Please spread the word!

WhatsApp
momsonsex bananocams.com lndian sexy com desi porn hindi apacams.com xxx banga zenra teenpornolarim.com desi panu tamil vedio sex porno-ultimum.com images of titanic heroine mera sex xxxindianporn2.com 18qt.com movies4u renklipornoo.net mp3tau shakila porn videos clasporno.org uttar pradesh girl sex rajmovie tubeblackporn.com gavti sexy pretty indian pornmovieswatch.org sex videos tube 8 xxx asam movstars.com sajini sex video village nude dance pornous.net atk girl 85porn sexxxymovs.com watch my gf find your milf desixxxtube2.com uncle fucking my free black.com bestsexporno.com xnxx tamil sex video wap tubes pakistaniporn.tv doghi marathi movie