Nickel Hits 10-week Low

Nickel traded around $17,400 per tonne, falling to its lowest level in over two months, as investors extended profit-taking after a rally above $19,600 in early May. Sentiment weakened further as momentum-driven positioning unwound. Additional pressure came from soft demand conditions in China, where nickel salt transactions remained sluggish and stainless steel output showed limited improvement, while elevated exchange inventories reinforced oversupply concerns in the near term. However, supply-side uncertainty in Indonesia provided some offset, as tighter mining quotas, rising fiscal and regulatory scrutiny, and adjustments to benchmark pricing have raised questions over future output growth. Reports of Chinese-backed investors exploring alternative nickel projects outside Indonesia further highlighted potential shifts in investment flows and longer-term supply constraints.

Nickel decreased to 17501.00 USD/T, the lowest since April 2026. Over the past 4 weeks, Nickel lost 6.18%, and in the last 12 months, it increased 17.58%.

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.