Nickel Prices Decline on Oversupply Concerns Despite Pockets of Stainless Steel Demand
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Nickel prices experienced a short-lived rally but later fell due to a bearish outlook and ballooning inventories.
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The stainless steel market showed mixed signals, with improved demand conditions but overall weakness.
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Indonesia's dominance in the nickel market poses challenges for price stability and global production.
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Although they do not offer a meaningful correlation to prices, LME inventories continued to balloon throughout March and now sit at their highest level since May 2022.
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Estimates say Indonesia will account for roughly half of global primary nickel output in the coming years, giving the country significant control over market direction.