FX.co ★ Nickel Futures Fall to Over 4-1/2-Year Low

Nickel futures have fallen below $14,900 per tonne, marking their lowest point since September 2020, amid ongoing trade war issues and an oversupply from Indonesia. The United States has introduced a 25% tariff on aluminum, causing disruptions in global markets, while potential tariffs on copper have contributed to price instability. Tensions escalated after China declared a 34% tariff on all US imports and imposed export controls on rare earth materials starting April 10, in retaliation to recent US tariffs enacted by President Trump. Concurrently, increasing nickel stockpiles on the London Metal Exchange (LME) are exacerbating the situation, with Chinese-processed Indonesian nickel now representing over 50% of LME inventories, a significant rise from 11% at the beginning of 2024. Indonesia's burgeoning output of refined metal is further saturating the market, tightening margins even for local producers.