Supply squeeze and elevated raw material costs lift prices: Nickel Q2 2026 Price Review

The nickel market experienced a mixed second quarter in 2026, as supply-side constraints supported intermediate prices while weaker LME nickel prices and cautious downstream demand limited further gains. Benchmark’s EXW China nickel sulphate price rose by 4.8% between April and June, from RMBT 31,250/tonne ($4,594) to RMB 32,750/tonne ($4,847). Mixed  hydroxide precipitate (MHP) prices increased by 7.8% over the same period, with aggregate prices reaching $9,045/tonne. “Overall, Q2 was characterised by tight upstream supply and cost pressure stemming from elevated sulphur costs and policy uncertainty, rather than a meaningful recovery in nickel demand,” said Frederick Bloomfield, a senior price analyst Benchmark. “Prices ended the quarter supported by heightened raw material costs and supply risks, but face a more bearish outlook for Q3 where supply constraints are expected to be at least partially alleviated.”