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Nickel is shaping as one of the breakout commodities of 2019, and it settled at three-month highs overnight on positive trade news.

According to Reuters reporting, nickel prices hit a three-month high after news of a “constructive phone call” between US and Chinese trade official led to a rally in most base metals.

White House economic adviser Larry Kudlow said the call “went well” and the two sides were talking about a face-to-face meeting, but he warned there was no magic way to reach what has so far been an elusive deal.

But, that was enough for the market, which rose as much as 2.1 percent in London to $US12,970 ($A18,600) per tonne — while there was also traction in Shanghai.

Yesterday’s rally completed an impressive three months for the metal, and adds to an overall robust year.

Chart from the LME website

While nickel is used in steel, it’s also gaining traction as a battery metal.

For example, last month it emerged that Canada-based Cobalt 27 Capital Corp was getting out of cobalt altogether and getting into nickel – forming a new company.

“Look, I think the future is nickel,” Cobalt 27 Capital Corp Anthony Milewski said reflecting on the deal.

While this is just one deal, it does paint somewhat of a brighter picture for the metal — particularly in the shorter-term.

For example, Pulead’s chief executive officer Yuan Gao recently sounded the alarm on nickel supply.

Aside from trading the underlying commodity, the ASX offers opportunities to trade in several companies with exposure to the metal.

For example, Blackstone Minerals (ASX:BLK) recently announced its intentions to revitalise the Ta Khoa project in Vietnam while Moho Resources (ASX:MOH) also offers exposure through its Silver Swan North project


Star Investing has a commercial partnership with some companies mentioned in this article. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.