Looking back at the entire year of 2023, metal trading was virtually devoid of any bright spots, with nickel ore performing the worst and likely to remain in a difficult situation in the short term.
　　Nickel is primarily used in the production of electric-vehicle batteries and stainless steel. In 2023, the price of this metal’s futures on the London Metal Exchange (LME) fell by 45% year-on-year—the largest decline since 2008—and ranked last among all metal commodities. By contrast, copper prices on the LME saw a modest increase of 2.2% last year, while iron ore prices in Singapore rose by nearly 20% over the entire year of 2022.
　　According to reports, metal prices have come under pressure in 2023 due to headwinds from the global economy and uncertain prospects for China's economic growth. Since the beginning of 2023, the composite index of six metals traded on the London Metal Exchange has fallen by 5.6%, marking the second consecutive year of decline.
　　In most cases, concerns about a decline—or even a shortage—of metal ore supplies are either unfounded or premature. However, the situation is quite different for nickel ore, as the nickel ore market has been overwhelmed by a new wave of materials led by Indonesia, the world’s primary producer. Moreover, demand for nickel ore has also weakened. According to analysts at Huatai Futures, nickel supply continues to grow, yet consumption shows no signs of improvement.
　　Thanks to market optimism that the Federal Reserve will cut interest rates in 2024, copper prices posted an annual gain after rebounding in the fourth quarter of 2023. In a report released last December, Goldman Sachs Group Inc. noted that copper prices could rise to US$10,000 per ton within the next year.
　　It is reported that on the last trading day of 2023, copper prices fell by 0.8 percentage points to $8,559 per ton; nickel prices also declined by 0.8%, closing at $16,603 per ton.