Global Outlook: Surplus, Differentials, and Strategies
By Gaia Research Team.
The Gaia Research Team specializes in sustainable mining investments, focusing on responsible resource extraction. Committed to transparency and innovation, the Team aims to transform the mining sector into a more sustainable industry that benefits both the economy and the planet while addressing the huge supply and demand gap for critical minerals.
Trading Platforms and Price Discovery Shifts
Nickel’s price discovery has been in flux since the LME’s 2022 nickel crisis. The London Metal Exchange, long the primary venue for nickel trading, suffered a serious blow when extreme volatility in March 2022 led it to suspend nickel trading for eight days and cancel trades.
Source: Trading Economics adapted by GaiaMine Analysis
Source: St. Louis Federal Reserve, ISS ESG
In response, the LME rolled out a series of post-2022 reforms to restore confidence. These include daily price move limits (15% for nickel) to curb spikes, enhanced oversight of large OTC positions, and an action plan for broader transparency. Over 2023–2024 the LME also fast-tracked new deliverable brands: it approved six new nickel brands (five Chinese, one Indonesian) to ensure ample deliverable Class I metal in its warehouses.
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