Industrial Metal Nickel Entering Bear Market

LME Nickel Swings Down -20% from a Peak, First Time in 1-year

Considered an important industrial metal, nickel, as priced on the London Metal Exchange, has just experienced a 20% decline from its recent high. While arbitrary, a -20% drop in any given market is often considered a threshold marking the onset of a new bear market. Historically, similar swings reveal risks of further weakness in nickel and broader industrial metals, and tend to suppress equity returns while simultaneously lowering U.S. yields.

Nickel is an important industrial metal due to its excellent corrosion resistance and high-temperature stability, making it essential for producing stainless steel and various alloys used in demanding environments. Additionally, nickel's properties are crucial for battery production, particularly in electric vehicles and renewable energy storage.