Nickel Hits 4-week High

Nickel futures rose to around $17,800 per tonne, hitting a one-month high as cost pressures and supply constraints tightened market conditions. Jakarta has delivered a series of tightening signals, most recently revising Indonesia’s nickel ore benchmark pricing formula. The new framework now includes additional metals such as iron, cobalt, and chromium, while also raising the corrective factor used to set minimum ore pricing. This lifts the cost floor for upstream production, feeding through to higher input costs for smelters and strengthening the global nickel cost curve. At the same time, supply-side strain in Indonesia’s HPAL sector added to upward pressure. Sulphur prices have surged above $800 per tonne, prompting some processors to trim output of nickel intermediates used in battery materials, tightening near-term availability. Overall, steady battery demand and resilient industrial consumption have helped absorb supply concerns, keeping nickel supported at elevated levels.

Nickel increased to 17635.00 USD/T, the highest since March 2026. Over the past 4 weeks, Nickel gained 0.76%, and in the last 12 months, it increased 14.62%.

Nickel futures traded around $17,200 per tonne, climbing from recent levels, as Indonesia’s quota cut supported investor confidence. The country has signaled continued production discipline for its 2026 quota, with RKAB approvals indicating output in the range of roughly 190–200 million tons, reinforcing market sentiment despite ongoing oversupply. Prices have stabilized in the $17,000–$17,400 range as markets adjust to the tighter quotas. However, gains remain capped as global inventories are still elevated and the overall market is projected to run a surplus in 2026. Demand has stayed subdued, with stainless steel production ample and overall manufacturing activity weak, while battery sector adoption trends have yet to drive a sharp rise in demand this month. In addition, policy support emerged in April, with Western Australia offering interest-free loans to help nickel miners resume operations and ramp up production.