Nickel producers need sulfur. Disrupted shipping traffic in the Gulf could lead to lower nickel production.
Sulfur is necessary for the production of sulfuric acid, which is required for metal extraction from ore in nickel refining and copper processing. Indonesian nickel producers source around 75 percent of their sulfur imports from the Middle East. Production cuts would be possible, as shipping traffic in the Gulf in the Strait of Hormuz is increasingly being disrupted. In total, around 24 percent of sulfur comes from the Middle East. Indonesia accounts for approximately 60 percent of global nickel production.
Sulfur is needed not only by nickel producers, but also by copper mining companies, for example in the Congo, and fertilizer manufacturers. There are sulfur reserves in South Africa, but they are only expected to last for a few weeks. Although some copper mining companies obtain sulfuric acid as a by-product of copper smelting, this only provides partial protection against shortages.
Over the past three months, the price of nickel has risen significantly, mainly due to increased demand and production delays. Between mid-December and January alone, the price rose by a good 30 percent. Nickel is an essential raw material for stainless steel production and battery manufacturing. Developments in producing countries and geopolitical disputes can therefore influence the prices of battery metals such as nickel and cobalt, which are important for electric vehicles. Companies that focus on battery metals, such as Canada Nickel Company and Aurania Resources, should be of particular interest.
Aurania Resources - https://www.commodity-tv.com/ondemand/companies/profil/aurania-resources-ltd/ - focuses on precious metals and critical energy raw materials in Europe, Italy (nickel, cobalt, iron, copper, and chromium), and France. There, the company has also added three new exploration licenses (gold, polymetallic metals) through a subsidiary. The nickel-cobalt project in northern Italy is impressive, with the latest drilling results showing nickel, cobalt, and copper values.
Canada Nickel Company - https://www.commodity-tv.com/ondemand/companies/profil/canada-nickel-company-inc/ - has nickel and cobalt in its Crawford project in Ontario. With the approval of this project, the company has achieved a significant milestone in terms of environmental sustainability. According to the Canadian government, this is a project of strategic importance. The company has published very good mineral resource estimates for eight of nine properties. And the company has submitted NI 43-101 reports for two nickel sulfide projects.
Current company information and press releases from Canada Nickel Company (- https://www.resource-capital.ch/en/companies/canada-nickel-company-inc/ -) and Aurania Resources (- https://www.resource-capital.ch/en/companies/aurania-resources-ltd/ -).
Further information is also available in our new battery metals report at the following link: https://www.resource-capital.ch/en/reports/view/battery-metals-report-2025-11-update/
Sources:
https://tass.com/economy/2097909;
https://www.digitimes.com/news/a20260302PD205/nickel-walsin-government-2026-shipments.html;
https://www.klamm.de/news/nickelpreis-erreicht-neue-hoehen-signifikanter-anstieg-an-der-london-metal-exchange-68N695d58618b35c40001e523d8.html;
https://www.resource-capital.ch/en/reports/view/battery-metals-report-2025-11-update/
In accordance with Section 85 of the German Securities Trading Act (WpHG) in conjunction with Article 20 of Regulation (EU) 2016/958 (MAR), we hereby disclose that authors/employees/affiliated companies of SRC swiss resource capital AG may hold positions (long/short) in issuers discussed. Remuneration/relationship: IR contracts/advertorial: Own positions (author): none; SRC net position: less than 0.5%; issuer's stake in SRC ≥ 5%: no. Update policy: no obligation to update. No guarantee for the translation into German. Only the English version of this news release is authoritative.
Disclaimer: The information provided does not constitute any form of recommendation or advice. We expressly draw attention to the risks involved in securities trading. No liability can be accepted for any damage arising from the use of this blog. We would like to point out that shares and, in particular, warrant investments are generally associated with risk. The total loss of the capital invested cannot be ruled out. All information and sources are carefully researched. However, no guarantee is given for the accuracy of all content. Despite the utmost care, I expressly reserve the right to errors, particularly with regard to figures and prices. The information contained herein comes from sources that are considered reliable, but does not claim to be accurate or complete. Due to court rulings, the content of linked external sites is also our responsibility (e.g., Hamburg Regional Court, in its ruling of May 12, 1998 - 312 O 85/98), as long as we do not expressly distance ourselves from them. Despite careful content control, I assume no liability for the content of linked external sites. The respective operators are solely responsible for their content. The disclaimer of SRC swiss resource capital AG, which is available at https://www.resource-capital.ch/de/disclaimer-agb/, applies additionally.
Sulfur is necessary for the production of sulfuric acid, which is required for metal extraction from ore in nickel refining and copper processing. Indonesian nickel producers source around 75 percent of their sulfur imports from the Middle East. Production cuts would be possible, as shipping traffic in the Gulf in the Strait of Hormuz is increasingly being disrupted. In total, around 24 percent of sulfur comes from the Middle East. Indonesia accounts for approximately 60 percent of global nickel production.
Sulfur is needed not only by nickel producers, but also by copper mining companies, for example in the Congo, and fertilizer manufacturers. There are sulfur reserves in South Africa, but they are only expected to last for a few weeks. Although some copper mining companies obtain sulfuric acid as a by-product of copper smelting, this only provides partial protection against shortages.
Over the past three months, the price of nickel has risen significantly, mainly due to increased demand and production delays. Between mid-December and January alone, the price rose by a good 30 percent. Nickel is an essential raw material for stainless steel production and battery manufacturing. Developments in producing countries and geopolitical disputes can therefore influence the prices of battery metals such as nickel and cobalt, which are important for electric vehicles. Companies that focus on battery metals, such as Canada Nickel Company and Aurania Resources, should be of particular interest.
Aurania Resources - https://www.commodity-tv.com/ondemand/companies/profil/aurania-resources-ltd/ - focuses on precious metals and critical energy raw materials in Europe, Italy (nickel, cobalt, iron, copper, and chromium), and France. There, the company has also added three new exploration licenses (gold, polymetallic metals) through a subsidiary. The nickel-cobalt project in northern Italy is impressive, with the latest drilling results showing nickel, cobalt, and copper values.
Canada Nickel Company - https://www.commodity-tv.com/ondemand/companies/profil/canada-nickel-company-inc/ - has nickel and cobalt in its Crawford project in Ontario. With the approval of this project, the company has achieved a significant milestone in terms of environmental sustainability. According to the Canadian government, this is a project of strategic importance. The company has published very good mineral resource estimates for eight of nine properties. And the company has submitted NI 43-101 reports for two nickel sulfide projects.
Current company information and press releases from Canada Nickel Company (- https://www.resource-capital.ch/en/companies/canada-nickel-company-inc/ -) and Aurania Resources (- https://www.resource-capital.ch/en/companies/aurania-resources-ltd/ -).
Further information is also available in our new battery metals report at the following link: https://www.resource-capital.ch/en/reports/view/battery-metals-report-2025-11-update/
Sources:
https://tass.com/economy/2097909;
https://www.digitimes.com/news/a20260302PD205/nickel-walsin-government-2026-shipments.html;
https://www.klamm.de/news/nickelpreis-erreicht-neue-hoehen-signifikanter-anstieg-an-der-london-metal-exchange-68N695d58618b35c40001e523d8.html;
https://www.resource-capital.ch/en/reports/view/battery-metals-report-2025-11-update/
In accordance with Section 85 of the German Securities Trading Act (WpHG) in conjunction with Article 20 of Regulation (EU) 2016/958 (MAR), we hereby disclose that authors/employees/affiliated companies of SRC swiss resource capital AG may hold positions (long/short) in issuers discussed. Remuneration/relationship: IR contracts/advertorial: Own positions (author): none; SRC net position: less than 0.5%; issuer's stake in SRC ≥ 5%: no. Update policy: no obligation to update. No guarantee for the translation into German. Only the English version of this news release is authoritative.
Disclaimer: The information provided does not constitute any form of recommendation or advice. We expressly draw attention to the risks involved in securities trading. No liability can be accepted for any damage arising from the use of this blog. We would like to point out that shares and, in particular, warrant investments are generally associated with risk. The total loss of the capital invested cannot be ruled out. All information and sources are carefully researched. However, no guarantee is given for the accuracy of all content. Despite the utmost care, I expressly reserve the right to errors, particularly with regard to figures and prices. The information contained herein comes from sources that are considered reliable, but does not claim to be accurate or complete. Due to court rulings, the content of linked external sites is also our responsibility (e.g., Hamburg Regional Court, in its ruling of May 12, 1998 - 312 O 85/98), as long as we do not expressly distance ourselves from them. Despite careful content control, I assume no liability for the content of linked external sites. The respective operators are solely responsible for their content. The disclaimer of SRC swiss resource capital AG, which is available at https://www.resource-capital.ch/de/disclaimer-agb/, applies additionally.
