The London Metal Exchange (LME) nickel inventories remained above 250,000 tons, increasing by 57.6% so far this year. Nickel stocks on the Shanghai Futures Exchange (SHFE) also exceeded 40,000 tons, reaching a more than seven-year high. The sharp rise in global refined nickel inventories showed persistent oversupply.

LME nickel stocks stood at 254,760 tons at the end of November, up by 2,658 tons for the month and marking the highest level in over four years. Although inventories edged down in early December, compared with 160,536 tons at the end of 2024, LME stocks have greatly increased by 92,538 tons or 57.6% this year.

With Indonesia-driven production capacity continuing to expand, global refined nickel output is steadily increasing, reflecting a loose supply environment. Market participants said that although Indonesia’s mining policies have seen fluctuations and some mining areas have experienced environmental disruptions, the effect on overall global supply was limited, and supply pressures are expected to persist.