Tsingshan pulls the matte out from under nickel's rally

China's Tsingshan Holding has found a way of producing Nickel Matte from NPI (Nickel Pig Iron) that could be used to produce Nickel Sulphate and have signed a few supply deals with EV manufacturers in China. This has sent the prices of Nickel and Nickel Sulphate diving.

This development is a potential gamechanger in Nickel Sulphate supply but it is at the expense of increased carbon emissions. Delivery of Nickel Matte from Tsingshan expected to flood the market in October 2021.

Despite these points, shares in most nickel sulphate producers and explorers dived including IGO (with exception of AOU which suddenly rallied at the end of the day -  they have a history of going overboard on their ASX announcements to move their stock!).

However I believe NIC is talking up on this development as they are large producer of NPI.