01/09/2026
📊 HONGLUN VISION | August 2026 Nickel & USD Market Brief
Nickel prices showed mixed performance in August, while the US Dollar Index weakened.
As a key raw material for stainless steel production, nickel price movements remain closely linked to production costs, procurement strategies and downstream market expectations.
🔹 August Average Snapshot
LME Nickel: 16,766 USD/ton +0.65% MoM
SHFE Nickel: 128,310 CNY/ton -2.06% MoM
DXY: 99.40 -1.55% MoM
📈 LME Nickel | +0.65%
LME nickel remained relatively resilient in August despite continued supply-side pressure.
Elevated Indonesian production expectations and high global nickel inventories continued to cap the upside, while cost support and supply uncertainty helped prevent a deeper correction.
📉 SHFE Nickel | -2.06%
SHFE nickel came under greater pressure than LME nickel.
Sufficient domestic supply, cautious downstream procurement and relatively weak stainless steel demand limited buying momentum. Elevated inventories also continued to weigh on the domestic nickel market.
📉 DXY | -1.55%
The US Dollar Index weakened during August, moving toward the 99–100 range.
A softer dollar provided some support for dollar-denominated commodities, although nickel's fundamental supply conditions remained the dominant factor influencing price performance.
🔍 What Does This Mean for Stainless Steel?
The August market presented a divergent picture:
LME Nickel ↑ 0.65% SHFE Nickel ↓ 2.06% DXY ↓ 1.55%
This divergence highlights the importance of monitoring both international supply dynamics and domestic stainless steel demand when evaluating nickel-related procurement costs.
For stainless steel producers, traders and buyers, the key factors to watch in September include:
🇮🇩 Indonesian Nickel Supply → LME / SHFE Inventories → Stainless Steel Demand → Fed Policy Expectations → USD / DXY Movement
As the traditional September–October peak season approaches, actual downstream demand will be an important indicator of whether the nickel and stainless steel markets can regain stronger momentum.
HONGLUN VISION
Tracking Nickel • Stainless Steel • Raw Materials • Global Market Trends
Market data and analysis are for reference only and do not constitute investment advice.
Fujian Honglun Steel Industry Co., Ltd.
🌐 Web: www.honglungroup.com
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