Nickel Rebounds From 8-Month Low

Nickel traded around $16,230 per tonne, rebounding from its lowest level in eight months as the recent decline attracted some buying interest. The move marked a technical recovery following the recent selloff. However, the near-term outlook remained constrained by weak Chinese downstream demand, with nickel salt procurement and spot stockpiling subdued while some precursor producers reduced operating rates. Additionally, Indonesia’s revised nickel ore benchmark price formula sharply lowered the HPM for low-grade 1.2% nickel ore to around $24.89 per wet tonne, nearly halving the previous level, which could reduce feedstock costs for HPAL plants and encourage greater use of low-grade reserves. High inventories across the nickel supply chain also pointed to ongoing destocking, limiting the scope for a sustained recovery despite the latest price rebound.