In a significant development for the base metals market, London Metal Exchange (LME) nickel prices fell 1.45% to $16,891.63 per tonne on February 17, 2026. This decline comes amid a backdrop of sharply reduced inventory levels, with LME nickel stocks reaching a record low, highlighting ongoing concerns about supply constraints. Trading Economics reports that this drop follows a brief uptick the previous day, underscoring the volatility currently characterizing the nickel market.
Market Action
The drop in nickel prices is part of broader market movements that have seen fluctuations across several base metals. The LME reported nickel prices stabilizing at $17,100 per tonne earlier today, before the recent fall. Meanwhile, other metals such as aluminum and zinc also experienced price declines, with aluminum falling 0.3% to $3,041 per tonne, as reported by Energy News.
Analysis
The current decline in nickel prices is largely driven by the record low inventories at the LME. Industry reports suggest that ongoing supply disruptions, coupled with strong demand from the electric vehicle (EV) sector, are straining available stocks. Nickel is a critical component for lithium-ion batteries, and as EV production ramps up globally, the metal’s demand continues to grow. According to an analysis by StoneX, supply-side risks remain prevalent, exacerbated by US sector-specific tariffs that have impacted global trade flows.
Context
This week’s developments fit into a larger picture of uncertainty in the base metals market. While the LME has seen an uptick in copper stocks, up 7,975 tons as of February 16, 2026, Westmetall notes that the Shanghai Futures Exchange has reported an increase in copper inventories by 160,000 tons year-to-date, signaling softening demand particularly from China. This contrasts with the situation for nickel, where low inventories are intensifying market volatility.
Outlook
Looking ahead, analysts are keeping a close watch on inventory levels and geopolitical factors that could further impact nickel pricing. The anticipated growth in the EV market may continue to drive demand, potentially exacerbating the current supply crunch. Additionally, any changes in tariffs or trade policies could significantly alter the market landscape. Investors and industry stakeholders should remain vigilant, as the situation may evolve rapidly.
It is important to note that while past performance of nickel and other base metals can provide insights, it does not guarantee future results. Market participants should consider these dynamics as part of a broader risk assessment strategy.
Conclusion
The recent drop in nickel prices highlights the ongoing challenges within the base metals sector, particularly in terms of supply constraints and inventory management. As the market continues to navigate these complexities, stakeholders should remain informed and adaptive to potential shifts in demand and policy changes. For more detailed analysis and updates, industry participants are encouraged to monitor official reports and expert insights regularly.
SEO Information
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