Why are ASX nickel shares tumbling today?

We take a look at what's weighing on nickel explorers on Wednesday.

| More on:
A woman sits with her hands covering her eyes while lifting her spectacles sitting at a computer on a desk in an office setting.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • ASX nickel shares are having a tough day on the market 
  • The nickel price has fallen 3% to US$28,343 per tonne 
  • Goldman analysts also issued a dire outlook for battery metal shares 

ASX nickel shares are struggling on the market today.

Nickel explorers in the red today include Nickel Mines Ltd (ASX: NIC), Mincor Resources NL (ASX: MCR), Panoramic Resources Ltd (ASX: PAN), and IGO Ltd (ASX: IGO). By comparison, the S&P/ASX 200 Materials Index (ASX: XMJ) is down 0.91% at the time of writing.

Let's take a look at why nickel shares are having such a tough day on Wednesday.

Nickel outlook

The IGO share price is down 13% at the time of writing with Nickel Mines 4.12% lower. Meanwhile, Mincor Resources is down 4.69% while Panoramic Resources is 6.78% in the red.

ASX nickel shares appear to be falling in response to nickel price pressure and a note out of Goldman Sachs.

The nickel price has fallen 3% today to $28,343 per tonne, Trading Economics data shows.

But it seems the Goldman Sachs Group may have had the most impact. The broker has predicted key battery metals, including nickel, cobalt, and lithium, could drop over the next two years, Bloomberg reported.

Analysts Nick Snowdon and Aditi Rai predicted nickel will rise 20% this year before being driven down by "fundamental pressures".

Nickel is a crucial component in electric vehicle batteries. 

The analysts also expressed overall concern the battery metals bull market is over. They said:

Investors are fully aware that battery metals will play a crucial role in the 21st century global economy.

Yet despite this exponential demand profile, we see the battery metals bull market as over for now.

Nickel Mines held its annual general meeting yesterday. In a presentation titled "Building a Nickel Empire", the company highlighted it plans to become among the top 10 nickel producers in the world.

Share price recap

While these four ASX nickel shares may be down today, overall they have surged over the past year.

Mincor shares have exploded 133% in the past 12 months while Panoramic shares have soared 67%. The Nickel Mines share price has jumped 21% and IGO shares are 44% higher.

In comparison, the S&P/ASX 200 Index (ASX: XJO) has returned around 1% in the past year.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Two smiling work colleagues discuss an investment or business plan at their office.
Broker Notes

Which beaten down ASX 200 share did Goldman Sachs just upgrade to a buy rating?

The broker has become more bullish on this stock following last week's update.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Best Shares

The best ASX shares to invest $1,000 in right now

Analysts think that putting your money into these stocks could be a smart move.

Read more »

green etf represented by letters E,T and F sitting on green grass
Share Market News

4 ASX ETFs to buy for FY25 and beyond

Could these ETFs be top options for investors looking for long term picks?

Read more »

A smiling woman sips coffee at a cafe ready to learn about ASX investing concepts.
Opinions

How I'd invest $10,000 in ASX shares right now

I’m bullish about the prospects of these stocks.

Read more »

A fortune teller looks into a crystal ball in an office surrounded by business people.
Share Market News

What's the outlook for shares vs. property in FY25?

Generally speaking, there is optimism among the experts for both shares and property in FY25.

Read more »

Happy shareholders clap and smile as they listen to a company earnings report.
Best Shares

Top ASX shares to buy before earnings season

It's almost time to take a look at the books!

Read more »

sad party goer sitting alone after celebration
Share Market News

Here are the top 10 ASX 200 shares today

The ASX 200 had a horrible end to its trading week this Friday.

Read more »

A young female investor sits in her home office looking at her ipad and smiling as she sees the QBE share price rising
Broker Notes

3 ASX shares brokers tip for significant outperformance in FY 2025

Leading brokers expect some significant outperformance from these three ASX shares.

Read more »