Nickel Rebounds on Indonesia Output Cuts

2026-05-19 09:15 By Agna Gabriel 1 min. read

Nickel futures climbed back above $19,000 per ton, recovering from a near four-week low of $18,555 on May 18, after reports of additional output reductions in Indonesia, the world’s largest producer.

According to Shanghai Metals Market, around 10% to 15% of high-grade nickel pig iron capacity at the Weda Bay Industrial Park is set to undergo rotational maintenance in the coming months.

The report also noted that some NPI production used in stainless steel has already been reduced since March and April due to weaker ore availability and elevated costs, while shifting power allocation toward new aluminium projects has further tightened supply conditions.

Indonesia has lowered nickel ore mining quotas this year in an effort to support prices, leading to raw material shortages and forcing cutbacks at local smelters.

The country produces more than half of global nickel output, supported by significant Chinese investment.



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