- Nickel inventories remain elevated on LME
- Eramet restarts operations at Weda Bay mine
LME three-month nickel prices dropped this week by 2.5% w-o-w at around $16,415/t as of 11 September, compared with $16,760/t a week earlier. Nickel prices came under pressure amid rising LME inventories, expectations of higher Indonesian supply and cautious downstream demand. The restart of Eramet’s Weda Bay mine further strengthened supply expectations, while ongoing Indonesian efforts to control production continued to create uncertainty over the supply outlook.
LME nickel inventories rose to 270,768 t on 4 September from around 274,320 t on 11 September, an increase of 1.5%.
Supply developments
PT Vale Indonesia expects rising Indonesian nickel supply and continued price volatility to weigh on nickel prices in the near term. However, the company maintained a constructive medium- to long-term outlook, citing potential nickel demand growth from data centres, AI infrastructure, robotics and renewable energy, in addition to EV batteries. Vale is also diversifying its nickel portfolio through HPAL and MHP production while managing higher sulfur and sulfuric acid costs.
Meanwhile, Eramet has restarted operations at its Weda Bay nickel mine in Indonesia after suspending mining in May upon exhausting its reduced 2026 mining quota of 12 million wet metric tonnes, compared with 32 million wmt in 2025. The company is expected to update its 2026 external nickel ore sales guidance as discussions with Indonesian authorities continue. The restart comes amid Indonesia’s efforts to tighten mining quotas and manage nickel supply and prices.
New nickel resource
Fathom Nickel announced a maiden mineral resource estimate (MRE) for its Gochager Lake nickel-copper-cobalt project in Saskatchewan, Canada. The resource includes 858,701 t of indicated resources grading 0.41% nickel and 3.1 million t of inferred resources grading 0.32% nickel. The combined resource contains around 29.8 million lb of nickel, 8.5 million lb of copper and 2.4 million lb of cobalt. Recent drilling indicates further expansion potential along strike and beyond the current resource limits.
Market sentiment
Nickel market sentiment remained bearish to cautious, with falling prices and rising LME inventories reflecting subdued near-term demand. At the same time, developments in Indonesia remain a key supply-side factor, with higher output potential and mine restarts likely to keep supply expectations elevated.
Outlook
Nickel prices are likely to remain under pressure in the near term amid elevated exchange inventories, cautious downstream demand and expectations of higher Indonesian supply. However, tighter Indonesian production controls, potential demand from emerging applications and continued project development could provide medium-term support.
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