Nickel is the metal behind stainless steel and battery cathodes, priced on the LME, and it moves with Indonesian policy, inventories, and battery demand. InHedge structures and monitors nickel hedges for manufacturers that want to manage their exposure more closely. Talk to the InHedge hedging desk →
Nickel is valued for its exceptional properties, including corrosion resistance, high durability, and the ability to withstand extreme temperatures. It plays a central role in producing high-performance industrial products designed for durability and superior functionality.
- Stainless steel production: Over 70% of global nickel demand is used to enhance the strength and corrosion resistance of steel, making it essential for construction, transportation, and medical applications.
- Advanced batteries: Nickel is critical for lithium-ion batteries used in electric vehicles and energy storage systems, supporting the shift toward an electrified energy model.
- Specialized alloys: Applied in industries like aerospace and petrochemicals, where performance under extreme conditions is a priority.
Financial markets where nickel is traded
It plays a significant role in global metal markets, enabling risk management and investment strategies.
- LME (London Metal Exchange): The leading international reference for nickel futures and options contracts, widely used by producers and industries for cost planning.
- SHFE (Shanghai Futures Exchange): Reflects the dynamics of the Asian market, driven by China’s position as the world’s largest nickel consumer.
Market dynamics shaping prices
Nickel prices are influenced by a range of conditions:
- Mining production: Indonesia, the Philippines, and Russia lead global supply, though export restrictions and energy costs can impact availability.
- Industrial growth: Expansion in stainless steel production and the rise of electric vehicles drive increased demand.
- Sustainability: Recycling reduces reliance on mining, promoting a lower environmental impact while maintaining material quality.
Nickel in 2026
Nickel spent 2026 recovering. After bottoming near $14,000 per tonne in late 2025, the LME price rallied through the first half, trading in a $16,500 to $19,000 range and touching $20,000 in early May. The trigger was Indonesia, which supplies about two thirds of the world’s nickel and cut its 2026 ore quota by roughly a third to rein in years of oversupply.
The market is split beneath that headline. Ore is tightening under the quotas, which lifted the price, but refined metal still carries a surplus from the buildup of 2020 to 2024, and battery demand came in softer than expected as lithium iron phosphate chemistries take share in mass market EVs. The result is a bifurcated market, with abundant nickel pig iron for stainless steel on one side and tighter battery grade material on the other.
That divide is why forecasts scatter from $15,500 to nearly $20,000 per tonne. For anyone buying nickel, the class of metal and the next policy signal from Jakarta matter as much as the headline price, which is what a hedge is built to steady.
Data as of mid-July 2026. For current levels, talk to the InHedge hedging desk.
Nickel and sustainability in modern industry
Nickel recycling is a cornerstone of circular economy practices, allowing the metal to retain its original properties without requiring new mining operations. This significantly reduces the environmental footprint associated with traditional mining and supports more responsible production methods. Its use in advanced technologies, such as lithium-ion batteries and superalloys for aerospace applications, highlights its role in transitioning to a greener economy. Furthermore, investments in more efficient recycling processes and refining technologies are increasing the availability of recycled nickel in global markets, ensuring industries can meet rising demand without compromising sustainability. In financial markets, this metal remains a critical Commodity, serving as a strategic tool for risk management across key sectors such as transportation, energy, and construction.
Frequently asked questions
How is nickel priced?
Nickel is priced on the London Metal Exchange in dollars per tonne, with SHFE covering Asia. The LME is the global benchmark.
What is the nickel price in 2026?
Nickel traded in a $16,500 to $19,000 per tonne range through mid-2026, up from a late 2025 low near $14,000. It moves daily. For current levels, talk to the InHedge hedging desk.
What moves nickel prices?
Indonesian supply policy, LME and Chinese inventories, stainless steel output, and battery demand, which shifts with EV chemistry trends.
What is the difference between Class 1 and Class 2 nickel?
Class 1 is high purity, LME deliverable, and used in batteries and alloys. Class 2, such as nickel pig iron, feeds stainless steel. The two can move differently.
How do companies hedge nickel?
Through LME futures and options sized to real volume, with attention to the grade being bought. InHedge designs, executes, and monitors these structures. See metals hedging at InHedge.