Nickel prices on the London Metal Exchange eased to $16,975 per tonne on Monday, August 3, 2026, down from $17,315 per tonne in the previous session, according to SP Angel's daily market view published on Share Talk. The modest price decline came against a backdrop of significant regulatory developments in Indonesia, the world's largest nickel producer. Jakarta has allowed nickel, tin and other processed mineral exports to resume following a period of disruption caused by export checks and reporting requirements that had stalled shipments across key mining regions including Sulawesi, West Kalimantan and Bangka Belitung.
According to SP Angel, Indonesia has clarified its position on rare earth exports, banning pure rare earth shipments while permitting exports of processed minerals with only trace rare earth content. The Indonesian ministry is set to draft formal rules establishing thresholds and testing protocols, with exports now running again in the interim. The resumption of Indonesian nickel shipments is a meaningful development for global supply chains, given the country's dominant role in both ore production and downstream processing.
On the demand side, the electric vehicle sector delivered a strong signal for future nickel consumption. Global EV sales rebounded sharply in the second quarter of 2026, rising 35% quarter-on-quarter and 4% year-on-year, with more than 5 million electric cars sold in Q2 alone, setting quarterly records in 50 countries, according to the International Energy Agency's report titled Electric Car Markets in a Time of Uncertainty, as cited by SP Angel. The IEA data showed that over 9 million electric cars were sold worldwide in the first half of 2026.
Strong growth was recorded across emerging markets including Brazil, India, Australia, South Korea and Vietnam, where EV sales roughly doubled between March and June on a year-on-year basis. More than 90 countries recorded year-on-year EV sales growth in the first half of the year. However, China, which remains the dominant force in global EV markets, presented a more complicated picture.
Chinese EV sales are expected to stagnate on a year-on-year basis in 2026 for the first time this decade, with overall domestic car sales down almost 20% year-on-year. Despite this, EVs are set to exceed 60% of total Chinese car sales, an all-time high penetration rate. Chinese EV exports in the first half of 2026 nearly matched the total for all of 2025, as automakers increasingly target overseas markets to offset domestic weakness.
The IEA raised its 2026 global EV sales forecast to 29% of total car sales, up from 28%, citing renewed fuel-price volatility stemming from the Middle East conflict alongside continued policy support in Europe, Latin America and South-east Asia. The acceleration in EV adoption underpins long-term demand expectations for battery-grade nickel, a critical input for high-energy-density lithium-ion cells. Broader market conditions on Monday were shaped by geopolitical developments.
Crude oil prices fell sharply, with Brent declining to $82.9 per barrel from $88.1 per barrel previously, after US President Trump called off a planned military strike on Iran, citing new peace negotiations scheduled to begin on Monday. Officials from Tehran and Oman were reported to be in the final stages of a potential agreement regarding passage through the Strait of Hormuz. OPEC+ also approved a further 188,000 barrels per day production quota increase for September, completing the planned unwinding of voluntary output cuts introduced in 2023.
In currency markets, the Japanese yen continued to strengthen following a joint US-Japan market intervention, with the currency trading around 156.7 per dollar after briefly touching 155.2. Finance Minister confirmed it was the first joint intervention since 2011. The US Dollar Index eased to 99.79 from 100.14 previously.
Among other base metals tracked by SP Angel using LME data, copper rose to $13,872 per tonne from $13,809 per tonne, aluminium advanced to $3,200 per tonne from $3,183 per tonne, and zinc climbed to $3,691 per tonne from $3,605 per tonne. Cobalt on the LME three-month contract was unchanged at $56,290 per tonne. All commodity price data cited in this article is sourced from SP Angel Corporate Finance LLP's market view of August 3, 2026, as published on Share Talk, with LME prices for base metals sourced via the London Metal Exchange.
Source: share-talk.com