Nickel trading activity extended its gains from the previous session, with prices hovering around $16,850 per tonne as the broader industrial metals complex demonstrated continued strength. The upward momentum in nickel reflected a wider recovery across commodity markets, with copper prices trading near fresh record highs, providing support for the sector overall. Battery-sector demand showed signs of improvement during the period.
Recycled nickel sulphate production rose nearly 6 percent month-on-month in August, driven by stronger ternary cathode precursor demand and a relatively high share of high-nickel products. This development underscores the ongoing relevance of nickel in the energy transition narrative, particularly in electric vehicle battery production. However, the upside gains remained constrained by several headwinds.
Elevated nickel inventories continued to weigh on prices, while subdued stainless steel demand further capped the market's ability to sustain stronger rallies. These factors limited the upside potential despite the broader recovery momentum witnessed across industrial metals. Macroeconomic considerations also influenced nickel trading dynamics.
Rising rate-hike expectations weighed on dollar-priced commodities, including nickel, as a stronger U.S. currency typically makes commodities more expensive for foreign buyers and can suppress demand. Source: Trading Economics
Source: tradingeconomics.com