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Nickel is a chemical element and a transition metal. It is mostly used for high-grade steel manufacturing, and increasingly so, in batteries. Owing to its corrosion resistance, durability, and abundance in availability, stainless steel is used in various sectors, including food and beverage, construction, aerospace, transport, medical, chemical, etc. The major countries in nickel mining include Indonesia, Philippines, Russia, and New Caledonia. Indonesia is also the country with the largest reserves of nickel, followed by Australia and Brazil. Interestingly, nickel reserves are among the metals and minerals with the least remaining life years, however, because nickel is a highly recyclable material, this poses less of a problem.

Following drops in other base metals, nickel futures fell below $15,800 per ton, a two-week low, as the market responded to China's lack of robust stimulus. Investors were dissatisfied with the little impact on manufacturing, which lowered expectations for industrial demand, especially nickel, even though the government announced a CNY 10 trillion debt swap package to assist local governments in managing debt and obtaining cheaper loans. Nevertheless, because Indonesia is the world's largest producer of nickel, supply issues have kept nickel prices above the October low of $15,730. Due to difficulties granting mining permits, many smelters are relying on imports from the Philippines. Furthermore, Indonesia intends to broaden its export prohibitions to include nickel ore, which would further restrict availability worldwide.

In the medium term, the growth of the nickel market can be driven by the increasing demand for nickel in stainless steel alloys. Today, about two-thirds of the nickel sold annually is used for stainless steel. In addition, growing demand for nickel in automotive batteries, energy storage systems in wind turbines or lower cost solar panels is a key driver of market growth. Asia-Pacific accounts for a large share of nickel consumption. This is mainly due to the presence of large stainless steel companies and battery manufacturers. Additionally, increased nickel consumption in Electric Vehicles (EVs) is also expected to boost the market in the region, as it accounts for a significant portion of nickel demand.