INTELLIGENCE REPORT

Nickel Intelligence Report

August 17, 2026 · Intelligence Report · Nickel (LME / SHFE)
BUYER: DEFENSIVE

The nickel market consolidated the quota-expansion scare of August 5-6. LME cash settled at $16,575/mt on August 14, down 3.1% from the July recovery high, after Minister Bahlil denied that Weda Bay's supplementary allocation had been approved and the miners' association confirmed additional quotas would be selective, not broad. The INSG 32kt 2026 deficit survives as base case but depends on ESDM supplementary decisions still pending. The REE export bottleneck cleared August 10, releasing ~400,000t of cargoes - a supply-release event. LME stocks drew for six consecutive sessions to 264.7kt while China's refined output fell an estimated 16.7% y/y. The bull case requires limited supplementary allocations. The bear case requires confirmed expansion toward 300m+ tonnes.

LME Cash
$16,575
$/mt · Aug 14, 2026
LME 3-Month
$16,785
$/mt · $210 above cash
SHFE Nickel
¥127,140
CNY/mt · Aug 17, 2026
YoY Change
+9.1%
from $15,190 · Aug 2025 close
Combined Inventories
~366kt
LME 264.7 + SHFE 101.2 · Aug 13/Jul 31
YTD Change
-1.1%
from $16,765 · Jan 2, 2026
INSG Balance
-32kt
Deficit · first since 2021
Forward Curve
Contango $210
3M $16,785 > Cash $16,575
In-text verification labels: Verified: 12 · Estimated: 11
Data as of August 14, 2026 (pipeline). Research rounds 0-10 completed. Verification PASS.