Price

Nickel Pricing and Market Data

Nickel prices stabilized in the $15,000-16,000/tonne range through late 2025 after a turbulent few years. The market was reshaped by Indonesia's massive expansion of nickel pig iron (NPI) and high-pressure acid leach (HPAL) processing capacity, which flooded the market with Class 2 nickel and drove prices down from the 2022 short-squeeze peak above $100,000/tonne. However, growing demand for battery-grade Class 1 nickel - particularly nickel sulfate for NMC cathodes - has created a two-tier market. Western mines have struggled with profitability at lower prices, leading to closures in Australia and New Caledonia. Indonesia's export restrictions and environmental concerns around laterite processing add ongoing uncertainty.

Pricing Mechanisms

Nickel is priced using benchmarks from LME/Shanghai Futures Exchange. Nickel pricing operates through a combination of exchange-based benchmarks, price reporting agency assessments, bilateral negotiation, and long-term offtake contracts. The specific mechanism depends on product form, grade, and the buyer-seller relationship.

Price History and Notable Market Events

The Nickel market has been shaped by the following key events:

Price Drivers

Key factors influencing Nickel prices include production levels in Indonesia (55% of global supply), demand from stainless steel production and lithium-ion battery cathodes, inventory levels, energy costs, and government policy actions such as export restrictions or strategic stockpiling.

Spot vs. Contract Pricing

The Nickel market features both spot transactions and longer-term contracts. Spot prices reflect current conditions and are more volatile, while multi-year offtake agreements provide supply security for both producers and consumers. Current spot pricing is in the range of 17,000-18,000 $/tonne.