On the demand side, a clear divergence is emerging. China’s property sector remains a significant drag on stainless steel demand, with the prolonged construction slowdown weighing on nickel consumption. At the same time, AI data centers are emerging as a potential new structural demand driver. Hyperscaler backlogs have reached US$2.3 trillion, while the accelerating adoption of liquid cooling could create incremental demand for corrosion-resistant stainless steel used in piping, manifolds, valves, heat exchangers, and coolant distribution units. This could gradually broaden nickel’s demand base beyond its traditional exposure to stainless steel and EV batteries.

The nickel price bounce could therefore be an early signal that the market narrative is beginning to rotate — from “oversupply and weak demand” toward “El Niño-driven supply risk + emerging AI infrastructure demand.” While it remains too early to call this a sustained trend, the shift is worth watching closely, particularly if nickel prices can maintain their recent rebound despite still-ample inventories and weak traditional demand.

We continue to favor MBMA for its fully integrated business model, spanning from ore mining to processing. The company is also steadily ramping up production toward full capacity, which should support stronger operational performance going forward.