European AL6XN Price Mostly Stable on the lower side in Dec 2023 Amidst feeble Downstream Demand

In December 2023, the European spot market witnessed a slight decline in the price of AL6XN, attributing it to a decline in consumption from downstream sectors like chemical, construction, and construction. The market sentiment turned uncertain amidst harsh winter weather impacting manufacturing and construction activities in the major nations such as Germany, France, and Italy across Europe. Furthermore, the supply of AL6XN’s feedstock, primarily Nickel or Nickel Pig Iron (NPI) continued to rise as the mining process expanded in the major mining nations, leading to a weakening in cost support. The downstream automotive industry in Europe also experienced a decrease in demand due to a change in government policy.

The supply of feedstock Nickel exhibited a persistent upward trend at the end of the year 2023. Major AL6XN and batteries market players have globally invested in new deals and joint ventures to support mining activities in South Africa and other resourceful nations. Despite being a relatively unremarkable year for metals trading, Nickel stood out as the poorest performer, facing a notable annual decline in usage for AL6XN and battery manufacturing, leading to an excess supply across the globe. Despite low demand from end-use industries, major industries continued to invest in expanding mining activities for future market prospective. Conversely, the AL6XN feedstock industry faced a setback when a blast occurred on December 24 at a nickel smelting facility owned by a Chinese company in Sulawesi, Indonesia. The incident resulted in several casualties and injuries, highlighting the undisclosed expenses tied to Jakarta's pursuit of battery metal processing for industrial development. This setback in Nickel mining could potentially increase its price, providing support to AL6XN manufacturing industries.

Moreover, there was a decline in AL6XN demand from the downstream automotive industries in the latter part of the last quarter of 2023. Despite a consistent rise in electric vehicle (EV) sales throughout the year, they experienced a decline starting in November due to the expiration of government incentives. The initial surge in AL6XN demand from automotive customers rushing to buy electric cars before incentive discontinuation led to a subsequent drop in demand. The uncertainty surrounding new subsidy programs posed a threat to Germany's goal of having 15 million electric vehicles on its roads by 2030, complicating achievement. This decline in EV demand contributed to reduced AL6XN consumption in the European market.

According to ChemAnalyst, the price of AL6XN is expected to exhibit a slight upward trend in the first quarter of 2024 due to sufficient Nickel supply and upcoming downstream demands. The government is planning to implement a new policy to boost electric vehicle sales in the upcoming year, expecting to increase the usage of AL6XN in the upcoming quarters.