Why the Price of Nickel Continues to Show Strength

If you take a look at the 1-year Nickel chart, many would wonder what has triggered such an explosive move since January. Nickel is a significant alloy used in the production of stainless steel. Stainless steel however has seen its price drop along with most other alloys, so the question begs, why is nickel having such a significant rally while stainless steel prices continue to soften. Nickel is also used in the production of batteries used for electric cars. China is the dominant customer of electric vehicles and the demand is soaring. While other countries are trying to catch up, China just keeps gaining ground. As a result, the current run on Nickel seems to be directly related to the electric car market and the prospects for the future. Nickel has seen a slight pullback from its recent highs but if excitement and demand continue for electric vehicles, look for Nickel to continue to show strength.