Nickel Market Update

Advisory Bazaar Info Services

Nickel prices are likely to remain under pressure in the near term amid weak downstream demand, elevated inventories and subdued spot buying.

* Nickel Project: US-backed Orion CMC is reportedly in talks with Lifezone Metals to invest around $500–600 million in Tanzania’s high-grade Kabanga nickel project.

* Spot Nickel: SMM #1 refined nickel averaged ¥129,600/mt, down ¥650/mt from the previous session.

* SHFE Nickel: The most-traded September contract closed the morning session at ¥128,860/mt, down 0.67%.

* Nickel Sulphate: Weak spot demand and destocking pressure are expected to keep prices under pressure through month-end.

* NPI: High-grade NPI prices declined further as stainless steel mills remained cautious on procurement.

* Stainless Steel: Rising inventories, weak demand and higher production are bearish factors, while elevated production costs are providing downside support.

* Philippines Nickel Ore: Supply remains ample and demand subdued. High-grade ore is relatively firm, while low-grade ore faces pressure.

* Indonesia Nickel Ore: Prices edged higher, while the market continues to monitor RKAB quota adjustments and the potential new HPM pricing formula.

Outlook

Near-term nickel prices are expected to remain range-bound to weak. Elevated inventories and subdued downstream demand may limit upside, while production-cost support and developments in Indonesia’s nickel policies could restrict a sharp downside. SHFE Nickel is expected to trade in the ¥125,000–130,000/mt range.