Nickel Price Falls 7.31% to US$21,900 per Ton

Nickel trading on the London Metal Exchange (LME) fell 7.31% in the last two days, breaking through US$21,900 per ton. On Friday, August 12, 2022, the nickel price was still at US$23,500 per ton. However, transactions on Monday, August 15, 2022, saw the nickel price for the next 3-month contract traded at US$21,900 per ton.

This price represents a difference of US$1,600 compared to the previous day's closing price. The nickel price drop is due to supply concerns and worries about Russian supply. As is known, Russia supplies about 10% of the world's nickel needs. Furthermore, the Russian invasion of Ukraine has triggered a decline in global nickel prices.

Nickel is a key component in stainless steel production and a primary material in electric vehicle batteries. Meanwhile, the Indonesian benchmark nickel price currently stands at US$22,504 per ton. Indonesia is the country with the world's largest nickel ore reserves.

The nickel price at the end of last year was still at US$20,190 per ton, but as of Monday, August 15, 2022, it has increased by 7.81% year-to-date (YTD).