US Nickel Premiums Remain Stable Amid Market Slowdown

Nickel premiums in the US have remained stable over the past week, with little change in prices as market activity continues to weaken.

• Full truckload melting grade, 4×4-inch cathodes are still assessed at 60-65¢/lb, and briquettes remain at 30-35¢/lb. This stability reflects the subdued spot market, with many buyers adopting a wait-and-see approach until the first quarter of 2025.
• Demand remains muted, partly due to reduced order volumes from specialty stainless steel producers, leading to an overall softer market. This trend is expected to continue through December and may stretch into early 2025.

LME Nickel Stocks and Prices Reflect Weakening Demand
The broader global nickel market continues to show signs of weaker demand, as evidenced by the rise in nickel stockpiles at London Metal Exchange (LME) warehouses, which increased by 3.4% to 165,384 metric tonnes, up from 159,966 tonnes the previous week.

• Correspondingly, the LME nickel price for the month of December has dropped, averaging $15,700/tonne ($7.12/lb), compared to $16,740/tonne ($7.14/lb) in November. The official three-month LME nickel price settled at $15,955/tonne, a slight 0.5% week-over-week decline.
  This increase in inventories and the price decline suggest that nickel demand remains sluggish, with less trading activity in both the physical and futures markets.

Voisey’s Bay Expansion to Support Future Nickel Supply
A major development in the nickel supply chain is the completion of Vale’s Voisey’s Bay mine expansion in Canada. The project, which cost $2.94 billion, has converted the operation from an open-pit mine to an underground one. This transition is expected to significantly boost the mine’s annual nickel production capacity to 45,000 tonnes.

Vale’s Voisey’s Bay mine expansion is particularly significant for the US market, as it will provide a steady supply of nickel to meet the growing demand, especially amid current market uncertainty and supply constraints. As production ramps up, the Voisey’s Bay mine will play a pivotal role in stabilizing the nickel supply chain.