Nickel Hits 6-week Low

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 $18,000 per tonne, falling sharply from above $19,220 to its lowest level in over a month, 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.

Nickel futures traded above $19,200 per tonne, extending gains to near a one-month high, as tightening supply conditions supported prices. The market was buoyed by declining LME nickel inventories and fresh mining disruptions, including Zimbabwe's restriction on nickel exports, which reinforced expectations of tighter global supply. Further support came from persistent constraints across the nickel supply chain. Market participants continued to monitor tight ore quotas in Indonesia and limited mixed hydroxide precipitate (MHP) availability, while some producers maintained output cuts amid elevated costs, limiting supply growth. Meanwhile, demand remained relatively resilient. China's manufacturing PMI held at the expansion threshold of 50.0 in May, while expectations for continued growth in the electric vehicle sector supported the outlook for nickel consumption.