Nickel Falls to Nearly 6-Month Low as Indonesia Signals More Supply
2026-06-24 10:05
By
Agna Gabriel
1 min. read
Nickel fell to $16,880 per tonne, nearing its lowest level since early January, 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.