On 10 August nickel prices reached a new high for the year of US$10,897/t (US$4.94/lb), although subsequent profit-taking stimulated a retreat to below US$10,000/t (US$4.53/lb) by the end of the month. Developments in the Philippines have not advanced much further after last month's instigation of an environmental audit of the country’s mines. But if, as expected, there are more closures, prices should respond quite quickly. Fallout from the audit combined with the forthcoming monsoon season is likely to deplete Chinese ore stocks further in early 2017, unless NPI output is cut, either of which could trigger a renewed surge in nickel prices next year. How long that lasts will depend on developments in Indonesia, where NPI project advancement is accelerating.