FX.co ★ Nickel Futures Edge Lower

Nickel futures are trading near $17,100, slightly below recent highs of around $17,350, as the market continues to grapple with structural tightness. Supply remains constrained, with Indonesia moving forward on a proposed export tax on nickel and disruptions in shipping through the Strait of Hormuz adding logistical strain on key raw material flows.

On the corporate side, Vale Base Metals has reported a 13% increase in its nickel reserves and resources in 2025, bolstering the medium-term supply outlook. At the same time, regional initiatives such as the IndoPhil Nickel Corridor aim to build more integrated and resilient supply chains.

Demand fundamentals remain strong, underpinned by expanding use in electric vehicle batteries, renewable energy storage, and broader industrial applications. China continues to absorb a substantial share of exports, while diversification across Asia highlights nickel’s growing strategic role within global critical minerals markets.