Copper and nickel are both lower today as traders reassess supply, demand, inventory trends, and policy risks across the base-metals complex. Copper is pulling back after trading near record territory, but the long-term story remains supported by AI/data-center demand, electrification, tight supply, and tariff uncertainty. Nickel is also weaker as improved Indonesian supply expectations and RKAB quota developments continue to weigh on sentiment.
Today’s pricing snapshot
According to the latest Trading Economics CFD benchmarks, copper traded around $6.46/lb, down on the day. Copper remains strongly higher year over year and is still trading near historically elevated levels after recently reaching record highs.
Nickel traded around $16,678/metric ton, also lower on the day. Nickel remains positive year over year, but near-term momentum has softened as traders focus on Indonesian supply, stainless steel demand, EV battery demand, and ore availability.
5 key drivers behind today’s move
1) Copper is pulling back after record-level strength
Copper is lower today after a powerful rally earlier this month. The metal has been trading near record levels, so some profit-taking is not surprising as traders respond to inventory changes, macro pressure, and shifting risk sentiment.
Even with today’s pullback, copper’s longer-term setup remains strong because demand from power infrastructure, data centers, electric vehicles, and clean energy continues to grow.
2) AI and data-center demand remain major copper catalysts
Copper’s long-term demand story is still being driven by AI infrastructure and electrification. Data centers require large amounts of power equipment, wiring, cabling, cooling systems, grid connections, and electrical components.
That is why copper is increasingly being treated as a strategic infrastructure metal rather than just a traditional construction and manufacturing commodity.
3) Inventory and tariff uncertainty are keeping copper volatile
Copper traders are still watching LME and COMEX inventory flows closely. Recent market coverage showed that copper inventories have been shifting between global warehouses and the United States as traders react to possible tariff changes.
Tariff uncertainty can encourage stockpiling, redirect metal flows, and create regional supply-chain pressure. That keeps copper volatile even when the longer-term demand story remains positive.
4) Nickel is pressured by improved Indonesian supply expectations
Nickel is lower as traders continue to focus on Indonesia, the most important supply-side driver in the global nickel market. Expectations of improved Indonesian ore availability and possible RKAB quota relaxation have weighed on prices.
If Indonesia allows more ore into the market, smelter feedstock availability could improve and nickel prices could face additional pressure. If supply discipline remains tight, the downside may be more limited.
5) Nickel demand remains mixed
Nickel’s demand picture is still more complicated than copper’s. Stainless steel remains the largest source of nickel demand, while EV batteries support the longer-term outlook for higher-grade nickel products.
However, weaker downstream demand, possible Indonesian quota adjustments, and uncertainty around smelter consumption continue to limit near-term upside. That makes nickel more supply-policy-sensitive than copper right now.
What to watch next
Copper traders will be watching LME and COMEX inventories, U.S. copper tariff developments, China industrial demand, DRC concentrate restrictions, mine-supply updates from Chile, Peru, Indonesia, and the Democratic Republic of Congo, AI/data-center power demand, grid investment, EV sales, U.S. dollar moves, Treasury yields, and broader risk sentiment.
Nickel traders will be watching Indonesia’s RKAB quota process, supplementary quota approvals, stainless steel demand, EV battery demand, Class 1 nickel premiums, LME inventories, Indonesian export rules, ore shipments, sulfur costs, and whether supply discipline continues through the second half of 2026.
Bottom line
On August 18, 2026, copper and nickel are both lower. Copper is pulling back from elevated levels, but its long-term setup remains supported by AI/data-center demand, electrification, grid upgrades, clean-energy growth, tariff uncertainty, and tight supply. Nickel remains positive year over year, but near-term upside is limited by improved Indonesian supply expectations and possible RKAB quota relaxation.
Copper remains the cleaner long-term structural-demand story, while nickel remains the more supply-policy-sensitive trade today.
