About Nickel
Nickel's biggest use is stainless steel, but battery cathodes for electric vehicles have become an important source of demand. Indonesia's rapid expansion has reshaped global supply in recent years.
What moves the nickel price
- Stainless steel output, mostly in China and Indonesia.
- EV battery demand and battery chemistry choices.
- Indonesian supply policy and ore export rules.
- LME liquidity and inventories.
The Indonesian supply wave
Over the last decade Indonesia has become the dominant force in nickel, banning raw ore exports and attracting large investments in local processing. The resulting flood of nickel pig iron and battery-grade intermediates pushed the market into surplus and forced higher-cost mines elsewhere to close. Indonesian policy on ore quotas, royalties and export rules is now one of the biggest price drivers.
Volatility and the 2022 squeeze
Nickel is known for sudden spikes. In March 2022 the LME price more than doubled within a day during a short squeeze, and the exchange suspended trading and cancelled trades. Battery chemistry trends also matter: the growth of nickel-free lithium iron phosphate (LFP) batteries has tempered expectations for battery demand.
Contract specifications
| Global benchmark | LME Nickel, 6 tonnes, US dollars per tonne |
|---|---|
| Main use | Stainless steel (about two-thirds of demand) |
| Growth use | Cathodes for lithium-ion batteries |
| Dominant producer | Indonesia, followed by the Philippines, Russia, Canada and Australia |
Specifications as published by the exchange; they can change, so confirm on the exchange website before trading.
Trading hours
LME metals trade electronically on LMEselect roughly 01:00 to 19:00 London time, with open-outcry Ring sessions around midday London time. The 3-month contract is the usual benchmark.
Contract basics
LME primary nickel trades in 6-tonne lots priced in US dollars per tonne.
Quote unit
USD per tonne. Hours and specifications can change; always confirm on the exchange's website, especially around holidays.
Nickel FAQ
What moves the price of nickel?
Stainless steel output, mostly in China and Indonesia. EV battery demand and battery chemistry choices. Indonesian supply policy and ore export rules. LME liquidity and inventories.
When does nickel trade?
LME metals trade electronically on LMEselect roughly 01:00 to 19:00 London time, with open-outcry Ring sessions around midday London time. The 3-month contract is the usual benchmark.
What is the standard nickel contract?
LME primary nickel trades in 6-tonne lots priced in US dollars per tonne.
What drives nickel prices?
Stainless steel output, battery demand, and above all supply from Indonesia, along with Chinese demand and exchange inventories.
Why is the LME nickel contract only 6 tonnes?
Nickel is far more valuable per tonne than metals such as aluminium or zinc, so a smaller lot keeps contract values manageable.