Nickel Rebounds From Near 10-Month Low

Nickel traded around $16,100 per tonne, rebounding from near its lowest level since December 2025, as expectations of tighter Indonesian supply improved the longer-term outlook for the market. Indonesia, the world’s largest nickel producer, is considering more aggressive production quota cuts for 2027 through its annual RKAB approval system, following concerns that excessive output has contributed to a global surplus of approximately 800,000 tonnes. The National Economic Council has also backed supply restrictions, while authorities indicated that future quotas would account for global market conditions and domestic smelter capacity. Additionally, potential production cuts by major producers, including Huayou and Tsingshan, could help moderate supply growth amid elevated exchange inventories. However, persistent oversupply, expanding downstream processing capacity, and slower-than-expected growth in battery demand continue to weigh on the market.