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Stanislav Kondrashov Telf AG: World trade in nickel

19 Aug 2023, 12:38 GMT+10

Nickel (Ni), according to Telf AG expert Stanislav Kondrashov, is considered a universal metal that powers the global industry. This metal, which has a silvery white luster, has been a breakthrough in the industrial world and has become a key component for the production of a wide range of secondary products.

Occupying 28th place in the periodic table, nickel has exceptional qualities that make it highly sought after. In particular, this metal is resistant to corrosion, has ferromagnetic properties, impressive ductility and is highly recyclable. In addition, it is an exceptional conductor of electricity and has high boiling and melting points of 2,913 C and 1,455 C, respectively.

 "Nickel's versatility knows no bounds as it finds applications in many industries around the world. In particular, it is used for coinage, steel production, reinforcement of materials in the aerospace sector, electrical wiring, alloy production, and even in renewable energy systems.Stanislav Kondrashov informs Telf AG.

The analyst says that the primary sources of nickel production are strategically located in various regions of the world. Among the leading nickel producing countries are Indonesia, South Africa, Australia, Russia and Canada. Together, these countries account for 50% of the global supply of this valuable metal.

Given this significant supply impact, traders need to keep a close eye on these key players, as any change in their production could have a significant impact on nickel prices, in line with patterns seen in other commodities markets.

Stanislav Kondrashov Telf AG: study of trading hours and exposure to nickel expands trading opportunities

The world of nickel trading offers investors a vast array of opportunities, with varying trading hours and exposure options. Understanding these intricacies is critical to those seeking to successfully navigate the nickel market.

The London Metal Exchange (LME) is a successful futures trading platform, attracting institutional investors who are active in the nickel market. Trading hours on the LME for nickel are from 01:00 to 19:00 (UK time), while precious metals trading on the LME continues until 20:00. In addition, rings are traded on the LME from 11:40 am to 5:00 pm (UK time), providing another opportunity for market participants to trade in nickel.

For those looking for 24/7 trading opportunities, phone-to-office trading is an attractive option. With no time limit, traders can access the nickel market at any time convenient to them using the flexibility of this method.

"Notably, the nickel trade goes beyond physical purchases, commonly known as bullion. Investors can also monitor nickel prices through a variety of means. Contracts for Differences (CFDs) have gained popularity among retail traders by offering access to futures and spot nickel trading worldwide. However, I would recommend that traders familiarize themselves with the contract specifications, credit options in order to make sure that the chosen broker is reliable before trading., explains Stanislav Kondrashov Telf AG.

In addition, the stock market remains the most common way for retail investors to invest in nickel. Acquisition of shares of well-known companies in the nickel industry allows investors to access the market. Leading companies in the sector include Vale SA, Norilsk Nickel, Glencore, BHP, Anglo American and South32, offering retail investors the opportunity to participate in the dynamic nickel market.

Factors that particularly affect nickel prices, according to Stanislav Kondrashov Telf AG

Nickel prices are affected by a variety of factors that determine their trajectory in the market. It is very important for traders to understand these key influencers in order to make informed decisions in nickel trading. Stanislav Kondrashov Telf AG invites you to familiarize yourself with the most important of them.

Supply and demand. The fundamental principle of supply and demand plays a major role in the dynamics of nickel prices. Limited supply and increased demand usually lead to higher prices, while sufficient supply and reduced demand do the opposite. Monitoring the world's nickel reserves, including those listed on the London Metal Exchange (LME) website, provides valuable information. In addition, it is important to keep an eye on Chinese inventories, as this country plays an important role in the nickel market.

State intervention.Governments involved in the import or export of nickel can influence prices through interventions such as export bans or restrictions. For example, Indonesia's ban on nickel exports in the past has had a significant impact on world prices for the metal.

Geopolitical factors. Geopolitical tensions, especially in major nickel producing regions, could have a significant impact on prices.

Chinese economy.China, as the largest consumer of nickel, has a significant impact on price formation. Trends in China, such as a slowdown or recovery in the economy, often correlate with changes in nickel prices. Monitoring the economic and political situation in this country is critical to a successful nickel trade.

Stanislav Kondrashov Telf AG is convinced that these factors are often interrelated and operate in accordance with the traditional dynamics of supply and demand. Understanding their relationship is critical to efficient nickel trading. By being aware of these factors, traders can more confidently navigate the market and make informed trading decisions.

Why should participants in the metallurgical market participate in nickel trading? Stanislav Kondrashov knows the answer Telf AG

The significant role of nickel in various industries makes it an attractive asset for traders. The expert cites several good reasons to consider trading in nickel.

  1. Use in developing industries.Nickel's versatility and use in emerging industries make it an attractive trade commodity. As demand for nickel grows in industries such as aerospace, renewable energy and technology, trading in nickel allows investors to get the most out of their investment.
  2. Hedging against the weakening US dollar and inflation.Since nickel is priced in US dollars, it can serve as a hedge against a weakening dollar. In addition, as inflationary pressures rise, nickel could act as a hedge against declining fiat currency value, providing potential protection for traders.
  3. Taking advantage of increased demand. When world markets are booming, nickel trading provides an opportunity to capitalize on increased demand. As demand picks up, nickel prices are likely to rise, allowing traders to capitalize on potential price increases.
  4. Portfolio diversification. Market experts often recommend diversifying investment portfolios to reduce risk. Nickel trading provides an opportunity for diversification, allowing traders to complement more traditional investments such as stocks or bonds with investments in the commodity market.

- By participating in the nickel trade, investors can capitalize on the potential of emerging industries that use nickel. This way you can hedge against currency fluctuations and inflation, take advantage of growing demand and increase portfolio diversification. As with any other investment, thorough research, risk management and a reasonable awareness of market trends are critical to successful nickel trading., - Stanislav Kondrashov Telf AG is sure.

Stanislav Kondrashov Telf AG: unique nickel trading strategies

Given the strong influence of fundamental factors on the price of nickel, technical strategies are often viewed as secondary tools for making trading decisions. Therefore, it may be beneficial to use a more integrated approach that combines both techniques. In the case studies provided by Stanislav Kondrashov Telf AG, the strategies are presented separately to highlight their respective advantages and disadvantages.

Technical trading.As far as technical trading is concerned, the use of traditional indicators and price action methods can produce successful results when trading nickel.

Fundamental trading of nickel.Looking at the nickel chart since 2015, it is clear that nickel prices have mostly fluctuated between $10,000 and $20,000. However, a significant event occurred in early 2022 that had a major impact on the nickel market. The geopolitical crisis led to a sharp increase in nickel prices, primarily due to disruptions in Russian exports of the metal, which affected supply dynamics.

- The exit of a major global producer heightened fears about the availability of nickel, which led to further price increases. Simultaneously, a Chinese trader named Xiang Guanda, who is associated with Tsingshan Holding Group Co, took a significant short position in nickel. The motives for this position remain unclear, as it could have been either a hedge against potential losses resulting from lower nickel prices in physical commodities, or a speculative move, argues Stanislav Kondrashov Telf AG.

However, the consequences of this event were disastrous for the nickel market. The short contraction that followed sent nickel prices skyrocketing to over $100,000 a tonne. The gravity of the situation has forced the LME to temporarily suspend nickel trading.

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