US Nickel Premiums Hold Steady as Buyers Await Market Clarity

US Nickel

US nickel premiums remained stable this week as market activity waned, with spot market buyers largely sitting out until the first quarter of 2025.

Nickel Premiums Unchanged Amid Market Lull

Spot premiums for refined nickel in the US held steady this week:

• Full truckload melting grade, 4x4-inch cathodes: Assessed at 60-65¢/lb.
• Briquettes: Assessed at 30-35¢/lb.

The unchanged premiums reflect subdued market activity, with no spot sales reported. Industry insiders expect this trend to persist through December, potentially extending into the late first quarter of 2025. Reduced order volumes from specialty stainless producers have further softened demand.

LME Nickel Prices and Stock Levels

Global nickel stockpiles in London Metal Exchange (LME) warehouses increased by 3.4%, reaching 165,384 metric tonnes, up from 159,966 tonnes the previous week. This rise in inventories aligns with the broader slowdown in demand.

The LME nickel daily cash month-to-date average for December was $15,700/t ($7.12/lb), down from November’s average of $16,740/t ($7.14/lb). The official three-month LME nickel price settled at $15,955/t on Thursday, reflecting a 0.5% week-over-week decrease.

Voisey's Bay Expansion: A Major Development

In a noteworthy development, Brazilian mining giant Vale announced the completion of its Voisey’s Bay mine expansion in Canada. The transformation from open-pit to underground mining enables an annual nickel production capacity of 45,000 tonnes.

• The project, which began in 2018, cost $2.94 billion and significantly bolsters nickel supplies, particularly to the US market.

As Voisey's Bay ramps up production, it is expected to play a key role in stabilizing supply chains amid evolving market dynamics.