Nickel Remains Under Pressure from Ample Supply

Nickel traded around $15,600 per tonne, remaining near a recent over nine-month low of $15,510, as persistent oversupply and a stronger US dollar weighed on prices. LME inventories remained elevated at around 283,000 tonnes in early October, underscoring ample availability despite production disruptions, while Indonesian nickel ore benchmarks had declined and premiums turned negative. Additionally, the dollar index had recently reached its highest level since April 2025, while hawkish Federal Reserve commentary and expectations of tighter monetary policy added pressure on dollar-denominated metals. Overnight declines in Chinese nickel and stainless steel prices also pointed to continued weakness across the metals market. Meanwhile, Indonesia is considering a moratorium on new smelters producing semi-finished nickel products to address an estimated global surplus of 2.5 million tonnes. If implemented, the restrictions could curb future capacity growth.