Concern over global growth has depressed the prices of many metals in recent weeks. Nickel has been an exception, however, soaring by almost a quarter to a 13-month high in just a fortnight.
The price jump also reflects robust steel production in China in the first half and dwindling stockpiles: demand has eclipsed supply for five years. Traders are also looking forward to higher long-term demand as nickel is a component in batteries for electric vehicles.
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.