Analysts believed the global nickel market is facing its worst supply crunch in more than a decade, with buyers being forced to pay higher premiums for spots as exchange inventories plummet.

LME nickel inventories have fallen to their lowest level since 2019. On the other hand, nickel inventories on the Shanghai Futures Exchange also fell, leaving global buyers facing tight nickel supplies and keeping nickel prices at the highest level in more than 10 years.

Alastair Munro, an analyst at Marex Spectron, said in a report that the supply shortage problem in the last period has now affected the LME nickel market. The nickel stocks at the two exchanges, LME and the Shanghai Futures Exchange, are at a low level, and there is no sign of a pick-up.