Nickel Prices Weaken at the Start of Q3 2024

According to World Bank data, at the beginning of the third quarter, or July 2024, the average price of nickel with a minimum purity of 99.8% on the London Metal Exchange (LME) reached US$16,335 per ton.

The price weakened by 6.6% compared to the previous month (month-on-month), and fell by 22.6% compared to July of the previous year (year-on-year).

The World Bank projects the average nickel price for this year to be in the range of US$17,000 per ton.

This projection is down 21% compared to the average price in 2023, which reached US$21,521 per ton, and represents the lowest record since 2021.

According to the World Bank, the decline in nickel prices is partly influenced by increased supply.

"Global nickel production is expected to increase in 2024, despite some mine closures in response to the persistent decline in nickel prices, which have fallen by almost 40 percent since 2022," stated the World Bank in its April 2024 edition of the *Commodity Markets Outlook* report.

"The increase in nickel production largely comes from Indonesia and reflects a surge in smelter investment, mostly from China," it continued.