The US nickel market is experiencing a period of stagnation, with spot premiums for refined nickel remaining flat this week. This is primarily attributed to sluggish demand and abundant consumer inventories, leading buyers to adopt a cautious approach. SuperMetalPrice analysts observe that many consumers are well-stocked for the near future, limiting their need for additional nickel purchases.

Premium Assessments and Market Outlook

Nickel premiums for full truckload melting grade, 4×4-inch cathodes, are currently assessed at 60-65¢/lb. Meanwhile, briquettes are at 30-35¢/lb. Both figures are unchanged from the previous week. Market sources indicate that most buyers are unlikely to actively participate in the spot market until early summer. This suggests a period of potentially subdued activity in the US nickel market. This excess inventory situation is expected to persist through the first quarter of the year. Thus, demand forecasts may be further dampened.

Despite the current inventory surplus, the global nickel market could be impacted by potential supply-side changes later in the year. Indonesia, the world’s largest nickel producer, is reportedly considering cutting production by up to 35%, according to sources. This significant reduction could strain global nickel supply. It could also potentially support a price recovery, especially after nickel prices reached a four-year low in December. However, even with potential production cuts, nickel is still expected to be in surplus this year.

Global nickel stocks in London Metal Exchange (LME) warehouses have reached 164,310 metric tonnes (t), a 1.1% increase from 162,474t the previous week. Inventories have seen a dramatic rise in 2024, increasing by 150% or 96,378t. The LME nickel daily cash month-to-date average for January is $15,055/t ($6.83/lb). In comparison, the full-month December average was $15,471/t ($7.02/lb). The official three-month LME nickel settled at $15,450/t on Thursday, up 1% from $15,295/t a week ago on January 2nd. SuperMetalPrice will continue to monitor these price fluctuations and inventory levels closely, providing our readers with up-to-date insights on the nickel market.