Nickel Rebounds From 8-Month Low

Nickel traded around $16,230 per tonne, rebounding from its lowest level in eight months as the recent decline attracted some buying interest. The move marked a technical recovery following the recent selloff. However, the near-term outlook remained constrained by weak Chinese downstream demand, with nickel salt procurement and spot stockpiling subdued while some precursor producers reduced operating rates. Additionally, Indonesia’s revised nickel ore benchmark price formula sharply lowered the HPM for low-grade 1.2% nickel ore to around $24.89 per wet tonne, nearly halving the previous level, which could reduce feedstock costs for HPAL plants and encourage greater use of low-grade reserves. High inventories across the nickel supply chain also pointed to ongoing destocking, limiting the scope for a sustained recovery despite the latest price rebound.

Nickel traded around $16,000 per tonne, falling to its lowest level since December 2025 as Indonesia cut benchmark prices for low-grade nickel ore. The revised pricing formula nearly halves the cost of 1.2% nickel ore, improving the economics of high-pressure acid leach (HPAL) plants, while significant new capacity is expected to ramp up this year and next, potentially adding to global supply. Additionally, stronger US rate-hike bets lifted the dollar and Treasury yields, weighing on base metals broadly. Over the longer term, expected US deep-sea mining permits could eventually pave the way for additional nickel, cobalt, copper and manganese supply. Meanwhile, drought conditions in Indonesia have constrained Nickel Industries' Excelsior Nickel Cobalt facility to 30% of nameplate capacity, while output at the Indonesia Morowali Industrial Park could fall 30% to 40% if new water sources are not secured, limiting near-term supply growth.

Nickel decreased to 16150.00 USD/T, the lowest since July 2026. Over the past 4 weeks, Nickel lost 3.55%, and in the last 12 months, it increased 4.6%.