Sherritt’s finished nickel sales increased by 9pc in 2019 to 16,698mt from 15,273mt in 2018.
However, its Q4 2019 finished nickel sales dropped by 5pc to 4,089mt from 4,291mt during the same period in 2018. The average reference prices rose by 6pc annually in 2019, and increased by 35pc in Q4 2019 compared to Q4 2018.
The nickel sales decline in during the fourth quarter of 2019 was due to significant volatility in the nickel market because of the US-China trade war, Indonesian nickel ore export ban, and more. Since Jan 1, 2019, nickel has increased by 34pc and has been the best performing metal of the year.
However, Q4 2019 saw a 20pc decrease in nickel prices. Nickel inventory across the globe in Q4 2019 dropped to almost 50pc with news of Indonesia’s nickel ore ban taking effect in 2020. The LME and SHFE also saw a significant drop in inventory levels. But as market conditions weakened and cost increased, inventory levels began to rise back up by the end of the year.