Critical Minerals and Energy Intelligence

Q2 NickelMarket Highlights

Here’s a look at some of the top news highlights from this past quarter in the nickel market.

London Metal Exchange (LME) Faces Regulatory Action Over Nickel Market Turmoil: In March 2022, the LME suspended nickel trading for eight days following unprecedented price surges, with nickel prices briefly exceeding $100,000 per metric ton. The UK’s Financial Conduct Authority (FCA) fined the LME £9.2 million in March 2025 for inadequate controls during this period, citing insufficient oversight and training of junior staff who were managing the market during the crisis. We’ll no doubt see more on this subject going forward.

Mixed Production Results Among Major Nickel Producers: Data from S&P Global Market Intelligence indicates that total primary nickel output from major producers like Norilsk Nickel, Glencore, Vale, BHP, and PT Vale Indonesia increased by 8.5% year-over-year in Q2 2022, reaching 126,472 tonnes. However, this represented an 11.5% decline compared to Q1 2022.

PT Vale Indonesia Reports Decline in Nickel Production: PT Vale Indonesia experienced a 9% decrease in nickel-in-matte production in Q2 2022, producing 12,567 tonnes. The decline was attributed to maintenance activities.

Sherritt International Sees Revenue Boost Despite Lower Production: Sherritt International reported a 45% increase in revenue for Q2 2022, totaling $205.7 million, driven by higher realized prices for nickel, cobalt, and fertilizer. However, the company’s share of finished nickel production decreased by 12% year-over-year to 3,704 tonnes, primarily due to the timing of annual maintenance shutdowns.

Nickel Prices Remain Elevated Amid Market Volatility: Despite the extreme volatility in March 2022, nickel prices remained elevated in Q2 2022. The LME average nickel price was $13.13 per pound in Q2, a 67% increase from the same period in 2021.

Brazilian Nickel Achieves First Production at Piauí Nickel Project: Brazilian Nickel PLC commenced production at its Piauí Nickel Project in Brazil, marking the first nickel output from a stand-alone nickel laterite heap leaching operation.

Increased Use of Scrap in Stainless Steel Production: High nickel and ferrochrome prices led to a greater reliance on scrap in stainless steel production.

Indonesian Government Revokes Over 100 Nickel Mining Permits: In an effort to enhance governance over the mining industry, the Indonesian government revoked more than 100 nickel mining permits.

Anthony Milewski

Chairman, Nickel 28 Capital

Disclaimer

The Oregon Group maintains full editorial control over all content published on this website. While sponsored and advertised placements may be featured, the content remains the sole opinion of The Oregon Group. The author may receive compensation or remuneration for providing content, but all statements and expressions are made independently and are not influenced by sponsors or advertisers. From time to time, The Oregon Group and its directors, officers, partners, employees, authors, or members of their families, as well as persons who are interviewed for articles on this website, may have a long or short position in securities or commodities mentioned and may make purchases and/or sales of those securities or commodities in the open market or otherwise. By accessing and using this website, readers are cautioned to assume that each of the foregoing persons may have a financial interest in all companies and sectors mentioned on this website. Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable., and any such statements are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities or commodities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and The Oregon Group undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material. The information provided on this website is for informational purposes only and is not, directly or indirectly, an offer, solicitation of an offer and/or a recommendation to buy or sell any security or commodity, and the information provided on this website should not be construed as any advice or an opinion as to the price at which the securities of any company or commodity may trade at any time. The Oregon Group is a publisher of financial information, not an investment advisor. We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient, and the information provided on this website is not and should not be construed as personal, financial, investment or professional advice. Readers are cautioned to always do their own research and review of publicly available information and to consult their professional and registered advisors before purchasing or selling any securities or commodities and should not rely on the information contained herein. Neither The Oregon Group nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein. By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.