Nickel Extends Decline Amid Ample Supply

Nickel traded around $16,200 per tonne, extending losses as ample availability continued to weigh on prices. Philippine ore shipments have helped offset tighter domestic ore availability in Indonesia, partly easing the impact of the country’s lower 2026 nickel ore quota. Additionally, LME on-warrant inventories rose to 278,898 tonnes by September 24 from an August low of 264,444 tonnes, reinforcing the picture of ample supply. Meanwhile, Indonesia’s 2026 nickel ore quota remains below the roughly 315 million tonnes needed to operate its processing capacity at full rates. Production cuts at the Morowali Industrial Park due to water shortages could also affect around 100,000 tonnes of nickel pig iron output, potentially tightening supply.