LME Nickel Stocks down 1,404 MT to 278,814 MT

• Markets: Stocks balled out yesterday as tech companies rallied and oil prices eased for the time being. But the day was much more turbulent for Boeing, which fell nearly 11% after it tempered its forecast and said it won’t boost production of the 737 Max until the second half of 2027.

🇮🇱 No clear winner in Israel’s first election since Oct. 7, 2023. Following the highest turnout in the country in decades, it wasn’t immediately clear which party would win a majority in the next parliament: Prime Minister Benjamin Netanyahu’s far-right Likud, or the more centrist Yashar, led by former military chief Gadi Eisenkot. Both parties claimed the advantage last night, with Eisenkot saying, “The public opted for change,” after early results suggested a rebuke to Neanyahu, and Netanyahu later asserting, “We must form a strong right-wing government.” Early this morning, neither party appeared on track to win the 61 parliament seats needed to govern. That means weeks of negotiations, coalition forming—potentially with one of two Arab-led parties or even with each other—and possibly even another election round likely lie ahead.

🇧🇷 Brazilian markets crash after Lula's suspicious re-election. The country's benchmark index collapsed 10 percent shortly after opening, triggering an automatic trading halt, while the real plunged 12 percent against the dollar. Flavio Bolsonaro is challenging the results after a suspicious 10 million vote swing erased his first-round lead, and after left-wing Supreme Court allies extended voting by two hours.

🚗 Audi to build $4B factory in Georgia. President Trump announced that German automaker Audi will construct its first American plant, creating 4,500 jobs and producing 200,000 vehicles annually starting in the early 2030s. Trump credited his tariff policy for the move, noting Audi has absorbed $1.4 billion in losses since last year rather than manufacture domestically.

• The “never-ending” cruise ship, Villa Vie Odyssey, which promises a permanent life at sea, ended due to rising fuel costs.

Take away from LME week last week 

Nickel prices rallied during the week as news emerged of potential 20-50%

co-ordinated production cuts at Indonesian nickel operations in Q4 2026.

The cuts appear to be in response to weaker demand from the stainless

steel and battery sectors in China, so are not necessarily that bullish. The

focus of the market is on the potentially large rise in Indonesian MHP

production in 2027, and investors are not convinced that prices have

much upside in 2027 given recent disappointments regarding Indonesian

government RKAB policy.

Nickel is expected to trade in a tight range, with 63% expecting prices of

$15,000-$17,500/t in 12 months. The critical variable is not how much

Indonesian supply comes on (21%) but whether the government tightens

Broad macroeconomic outlook remains cautious

 Base metals sentiment is less positive than last year

Source: Macquarie Strategy,

Answer to today's trivia question: 1888