Nickel Futures Retreat From Recent Highs

Nickel traded around $17,900 per tonne, recovering slightly from a two-month low of around $17,700, as concerns over Indonesia's mining policies reinforced expectations of slower supply growth. Sentiment was underpinned by reports that recent quota restrictions and ore pricing changes have significantly increased production costs, prompting Chinese investors to warn that up to $50 billion in nickel-related investments could be affected. The developments heightened uncertainty over output growth in Indonesia, which accounts for more than two-thirds of global refined nickel supply. However, gains remained limited after Jakarta recently signaled greater flexibility on production quotas to support industry stability and investment. Additional pressure came from a persistent inventory overhang, with nickel stocks in London and Shanghai exchange warehouses remaining near multi-year highs, underscoring ongoing surplus conditions.

Nickel decreased to 18306.00 USD/T, the lowest since April 2026. Over the past 4 weeks, Nickel lost 4.89%, and in the last 12 months, it increased 19.19%.

Nickel traded around $17,700 per tonne, falling sharply from above $19,220 to its lowest level in nearly two months, as investors locked in profits. Additional pressure came from sluggish nickel salt transactions in China and rising inventories, reflecting softer near-term demand. However, losses were limited by ongoing supply concerns in Indonesia, where Weda Bay Nickel suspended ore production after exhausting its reduced 2026 mining quota. The company is seeking an extension after receiving an initial allowance of 12 million wet metric tons this year, sharply below the 42 million tons produced in 2025, reinforcing concerns over ore availability. Investors also monitored regulatory changes in Indonesia, including tighter mining quotas and proposed tax measures that have raised concerns about future nickel supply growth. At the same time, India is preparing incentives for domestic nickel processing, highlighting expectations for longer-term growth in battery material demand.