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| Nickel Manufacturing |
Traders Report Limited Interest and Assessing Impact of US Tariffs
European nickel premiums remained stable over the past week, with traders reporting subdued physical demand. Only near-term requirements are currently being pursued, as the market continues to evaluate the effects of US tariffs.
Soft Demand and Limited Trading Activity
Physical nickel demand has remained weak, with many buyers postponing purchases due to ongoing uncertainty about the impact of US tariffs. As a result, the number of deals and offers has remained within the range of previous assessments. Nickel premiums for non-Russian cathodes and briquettes have experienced slight downward pressure, reflecting limited buyer activity and increased competition among large European trading groups. The overall supply of nickel remains ample, which further dampens price movements.
Nickel Market Responds to Tariff Uncertainty and Supply Concerns
Benchmark nickel on the London Metal Exchange (LME) saw a 2% increase this week, reaching $15,735 per tonne. This rise is attributed to short covering, uncertainty surrounding US tariffs, and reports of a potential reduction in ore supply from the Philippines. Despite the flat premiums, there are signs of upward movement in the broader nickel market due to these factors.
On-warrant nickel stocks showed a slight decrease of 0.12% this week, with a total of 161,958 tonnes in inventory. Nickel stocks in Rotterdam increased by 300 tonnes, reaching 31,902 tonnes, with significant portions consisting of bagged briquettes, pellets, and full-plate cathodes. Nickel spreads from nearby cash to three-month contracts were in contango at $226 per tonne, slightly up from $218 per tonne last week.
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