Nickel Prices Stay Near Nine-Month Lows Amid Oversupply and Stronger Dollar
Nickel traded around $15,600 per tonne, holding close to a recent nine-month low of $15,510. On the Multi Commodity Exchange, Nickel Futures (MCX:NICKEL1!) slipped 0.41% to 1,516 INR. Elevated inventory levels continue to weigh on the market, with London Metal Exchange stockpiles sitting near 283,000 tonnes in early October despite minor production disruptions.
A strengthening U.S. dollar, reaching its highest level since April 2025, has added pressure to dollar-denominated metals. Rising expectations of a Federal Reserve interest rate hike in December have further softened market sentiment. In addition, overnight price drops in Chinese nickel and stainless steel point to ongoing weakness across key Asian industrial markets, while Indonesian ore benchmark values fell and premiums turned negative.
Looking ahead, traders are monitoring potential policy changes in Indonesia. Government officials are evaluating a moratorium on new smelters for semi-finished nickel products to curb an estimated global surplus of 2.5 million tonnes. If enacted, these restrictions could slow future capacity growth and help balance market supply over time.
Key points
- Nickel traded around $15,600 per tonne, remaining close to a recent nine-month low of $15,510 per tonne.
- London Metal Exchange inventories remained elevated near 283,000 tonnes in early October.
- A stronger U.S. dollar and expectations of a December Fed rate hike weighed on metal markets.
- Indonesia is considering a moratorium on new semi-finished nickel smelters to address a 2.5 million tonne surplus.
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How we writeDisclaimerQuestions and answers
Why are nickel prices falling?
Nickel prices are declining due to persistent global oversupply, elevated exchange inventories near 283,000 tonnes, a stronger U.S. dollar, and expectations of a Federal Reserve rate hike in December.
What is Indonesia doing about the nickel surplus?
Indonesia is considering a halt on new smelters producing semi-finished nickel products to control an estimated global market surplus of 2.5 million tonnes and restrict future capacity expansion.
Where are nickel prices currently trading?
Nickel traded around $15,600 per tonne, remaining near its recent nine-month low of $15,510 per tonne. On the Multi Commodity Exchange, Nickel Futures traded down 0.41% at 1,516 INR.