- Price gains capped by subdued demand, weak futures
- BHP pulls out of $942-million Tanzania nickel project
Nickel prices on the London Metal Exchange (LME) rose modestly by 1.6% compared to last week, with the 3-month contract settling at $15,460/t. Meanwhile, LME nickel inventories declined slightly by 1.7% w-o-w to 207,576 t from the previous 211,576 t. Prices have recently climbed into the upper range of their typical trading band, that is, between $15,000-15,600/t, bouncing back after reaching the lower end of this band several weeks ago.
The increase was driven by easing US-China trade tensions and a weaker US dollar. Despite these gains, subdued demand from China’s stainless steel sector and weak futures signals suggest potential short-term price fluctuations.
Market highlights
Indonesia maintains nickel export ban amid US trade discussions
Indonesia stood firm on its ban on raw nickel ore exports, despite US calls to relax restrictions under recent trade talks. The country emphasised that domestic processing will add value and promote industrial growth, as established by the 2020 Mineral and Coal Mining Law. Indonesian officials clarified that ongoing negotiations target exports of processed nickel products rather than raw ore, underscoring Indonesia’s strategic commitment to sustainable development and maximising returns from its nickel resources.
Canada Nickel announces significant expansion
Canada Nickel announced its intention to expand with significant new resource estimates at its Mann Central and Texmont projects in the Timmins district, Ontario. The combined new resources add over 1.6 mnt of contained nickel, reinforcing Timmins as a major nickel-producing region with total measured and indicated nickel resources surpassing 9 mnt. This expansion supports the district’s potential as one of the world’s leading nickel sulphide mining areas, with further resource updates expected by year-end.
BHP pulls out of $942-million Tanzania nickel project
BHP has withdrawn from a proposed $942-million nickel project in Tanzania, as announced by its partner Lifezone Metals in July 2025. The exit follows BHP’s decision not to proceed with further investment in the Kabanga Nickel Project. Lifezone plans to advance the project independently following BHP’s departure, emphasising the site’s strategic importance for clean energy supply chains.
Outlook
Nickel prices continue to rebound, with LME futures nearing a two-month high, driven by easing trade tensions, a softer US dollar, and declining inventories. The metal has posted five consecutive days of gains, signalling potential recovery after a prolonged correction phase.
However, weak demand from China’s stainless steel sector and soft futures suggest near-term price fluctuations may persist. Strategic government policies, supply-side restructuring, and renewed investor interest in stable jurisdictions could support a gradual recovery if backed by effective project execution.
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