Nickel Price Today

The nickel price is set on the London Metal Exchange (LME), the primary global venue for nickel trading. The LME nickel contract is quoted in US dollars per metric tonne, and its daily settlement prices serve as the reference for physical nickel contracts worldwide. The Shanghai Futures Exchange (SHFE) also trades nickel futures and is increasingly influential given China's dominant role as the world's largest nickel consumer and processor.

Stainless steel production accounts for approximately 70% of global nickel consumption. Nickel is added to steel alloys to improve corrosion resistance, strength, and heat tolerance. The 300 series stainless steels (the most widely used) typically contain 8-10% nickel. This means that stainless steel demand, driven by construction, appliances, industrial equipment, and food processing, is the primary driver of nickel consumption.

The fastest-growing demand segment is EV battery cathodes. Nickel-rich cathode chemistries such as NMC (nickel-manganese-cobalt) and NCA (nickel-cobalt-aluminum) are preferred by major EV manufacturers because higher nickel content increases energy density, enabling longer driving range. As the global EV fleet expands, battery demand for nickel is projected to grow from roughly 15% of total consumption today to potentially 30% or more by 2030.

Indonesia is the world's largest nickel producer, accounting for over 50% of global mine output. The Philippines is the second-largest producer, followed by Russia, New Caledonia, and Australia. Indonesia's dominance has grown rapidly since 2020 as Chinese-backed nickel processing facilities expanded across the country. Indonesia has also implemented export restrictions on raw nickel ore to capture more value domestically through downstream processing.

An important distinction in the nickel market is between Class 1 and Class 2 nickel. Class 1 nickel (99.8%+ purity) is deliverable on the LME and is used in batteries and specialty alloys. Class 2 nickel (lower purity, including nickel pig iron and ferronickel) is primarily used in stainless steel production. The rapid expansion of Indonesian Class 2 production has created a structural surplus in the stainless steel feedstock market, while Class 1 supply for batteries remains tighter. This two-tier market dynamic is a defining feature of the modern nickel industry.