Nickel Falls to 6-Month Low as Indonesia Signals More Supply

2026-06-24 10:05 By Agna Gabriel 1 min. read

Nickel fell to $16,300 per tonne, its lowest level since late December, as Indonesia prepares to permit a substantial increase in nickel mine production later this year.

The Energy and Mineral Resources Ministry has privately indicated plans to raise total mining quotas, known as RKABs, to 360 million tons from the 260 million tons issued in the first half.

While subject to final approval, this relaxation reverses the strict quota tightening implemented at the start of the year, which had previously caused prices to surge.

Indonesia accounts for about 60% of global nickel production following heavy Chinese investment.

Local smelters require these increased supplies to feed new processing plants, especially after major producers were forced to suspend output upon exhausting their previous allocations.

However, challenges remain, as producers may struggle to quickly ramp up operations amid persistent heavy rainfall.

For June, nickel prices was down roughly 14%.



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