Nickel Futures Hit Over 2-Month Low

2026-03-19 07:58 By Erika Ordonez 1 min. read

Nickel futures slid to around $16,700 per tonne in mid-March, hitting its weakest level in over two months, amid rising global risk aversion as Middle East tensions lifted oil prices and reinforced inflation concerns.

The shift has supported a stronger US dollar and tempered expectations for near-term Federal Reserve rate cuts, adding broad downside pressure across industrial metals.

At the same time, the conflict has exposed vulnerabilities in the nickel supply chain, particularly for battery-grade materials, as processing relies heavily on sulfur inputs linked to Middle Eastern trade routes.

Prolonged disruptions could raise costs for high-pressure acid leach (HPAL) operations, increasing price volatility even without direct ore shortages.

Meanwhile, in Indonesia, supply risks have also intensified after authorities halted operations at a nickel processing facility in Morowali following a fatal landslide, adding to ongoing regulatory scrutiny and production uncertainty.



News Stream
Nickel Futures Hit Over 2-Month Low
Nickel futures slid to around $16,700 per tonne in mid-March, hitting its weakest level in over two months, amid rising global risk aversion as Middle East tensions lifted oil prices and reinforced inflation concerns. The shift has supported a stronger US dollar and tempered expectations for near-term Federal Reserve rate cuts, adding broad downside pressure across industrial metals. At the same time, the conflict has exposed vulnerabilities in the nickel supply chain, particularly for battery-grade materials, as processing relies heavily on sulfur inputs linked to Middle Eastern trade routes. Prolonged disruptions could raise costs for high-pressure acid leach (HPAL) operations, increasing price volatility even without direct ore shortages. Meanwhile, in Indonesia, supply risks have also intensified after authorities halted operations at a nickel processing facility in Morowali following a fatal landslide, adding to ongoing regulatory scrutiny and production uncertainty.
2026-03-19
Nickel Hits 4-week Low
Nickel decreased to 16817.00 USD/T, the lowest since February 2026. Over the past 4 weeks, Nickel lost 3.11%, and in the last 12 months, it increased 4.18%.
2026-03-19
Nickel Futures Extend Losses on Risk-Off Flows
Nickel futures fell to around $17,200 per tonne in March, extending losses and following a broad pullback in other industrial metals as rising Middle East tensions fuel risk-off sentiment in manufacturing markets. Brent crude’s surge and a stronger dollar added pressure on industrial commodities, prompting investors to trim exposure to cyclical metals. On the supply side, Indonesian refiners reliant on Middle Eastern sulfur, roughly 75% of their needs, could face rising costs and potential production cuts if shipping disruptions persist, which may tighten input availability and pressure operations. Meanwhile, on the demand side, Chinese steel mills boosted high-grade NPI tender prices, signaling firm demand that may help limit further downside. Additionally, Indonesia’s 2026 ore quota of 260 to 270 million wet metric tons constrains full utilization of the country’s 2.7 million ton RKEF and HPAL capacity, with processing utilization expected to drop to 70-75% this year.
2026-03-09