Nickel Futures Extend Losses on Risk-Off Flows

2026-03-09 07:43 By Erika Ordonez 1 min. read

Nickel futures fell to around $17,200 per tonne in March, extending losses and following a broad pullback in other industrial metals as rising Middle East tensions fuel risk-off sentiment in manufacturing markets.

Brent crude’s surge and a stronger dollar added pressure on industrial commodities, prompting investors to trim exposure to cyclical metals.

On the supply side, Indonesian refiners reliant on Middle Eastern sulfur, roughly 75% of their needs, could face rising costs and potential production cuts if shipping disruptions persist, which may tighten input availability and pressure operations.

Meanwhile, on the demand side, Chinese steel mills boosted high-grade NPI tender prices, signaling firm demand that may help limit further downside.

Additionally, Indonesia’s 2026 ore quota of 260 to 270 million wet metric tons constrains full utilization of the country’s 2.7 million ton RKEF and HPAL capacity, with processing utilization expected to drop to 70-75% this year.



News Stream
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