Steel News

We strive to let you one step ahead of the market.

Unpacking factors behind recent spike in nickel prices

21 May 2024 16:02 reported by Louise Wang

A A A
The recent resurgence of nickel prices, surpassing US$21,000/ton on May 17th, was a result of a complex interplay of various factors. First, despite an apparent oversupply of nickel, a shortage of nickel ore persists due to delays in approval processes in Indonesia, the world's largest producer.

Furthermore, the imposition of restrictions on Russian metal by the US and UK, effective from April 13th, exacerbated supply constraints, particularly affecting nickel. Simultaneously, forecasts by the International Nickel Study Group (INSG) indicated a surge in global nickel demand to 3.45 million tons this year.

Besides, the surge in copper prices, breaking historical records, had a spillover effect on other base metals. In addition, the resilience of economies such as the US and Eurozone, demonstrated by improving economic indicators, fueled industrial activity and demand for metals. Finally, civil unrest in New Caledonia further exacerbated market uncertainty, disrupting local mining operations and adding to nickel price volatility.

In summary, the nickel price surge is a result of a combination of factors, including supply constraints, geopolitical tensions, increased demand, commodity market dynamics, economic resilience, and regional instability. Together, these factors have driven nickel prices to new highs.

Back to Steel News

Related News

LME nickel futures increase for two consecutive days

  • Stainless Steel
  • 20 Jun 2025 12:07

TISCO's annual stainless steel output exceeds 6 million tons

  • Stainless Steel
  • 20 Jun 2025 11:48

Indonesia strengthening domestic stainless steel production for oil & gas sector

  • Stainless Steel
  • 19 Jun 2025 15:46

Jiuli Hi-Tech Metals expands production capacity of stainless steel and special alloy tubes with SMS group partnership

  • Stainless Steel
  • 18 Jun 2025 14:48

Alstom & Outokumpu partner for green stainless steel metro cars

  • Stainless Steel
  • 18 Jun 2025 14:40

Metal Price Index

Learn more

LME Official Bid Price

  • Zinc
  • 2,597.00
  • 2,630.00
  • Aluminum
  • 2,524.50
  • 2,526.00
  • Copper
  • 9,711.00
  • 9,609.00
  • Nickel
  • 14,845.00
  • 15,035.00

Learn more