Nickel Extends Gains to 2-Week High

2026-11-05 07:41 By Erika Ordonez 1 min. read

Nickel traded around $16,250 per tonne, extending its rebound to a two-week high as expectations of tighter Indonesian supply improved the market's longer-term outlook.

Indonesia, the world’s largest nickel producer, is considering more aggressive production quota cuts for 2027 through its annual RKAB approval system, following concerns that excessive output has contributed to a global surplus estimated at approximately 800,000 tonnes by Indonesian officials.

The National Economic Council has also backed supply restrictions, while authorities indicated that future quotas would account for global market conditions and domestic smelter capacity.

Additionally, potential production cuts by major producers, including Huayou and Tsingshan, could help moderate supply growth amid elevated exchange inventories.

However, persistent oversupply, expanding nickel processing capacity, and slower-than-expected growth in battery demand continue to weigh on the market.



News Stream
Nickel Hits 5-week High
Nickel increased to 16340.00 USD/T, the highest since September 2026. Over the past 4 weeks, Nickel gained 4.14%, and in the last 12 months, it increased 8.39%.
2026-11-05
Nickel Extends Gains to 2-Week High
Nickel traded around $16,250 per tonne, extending its rebound to a two-week high as expectations of tighter Indonesian supply improved the market's longer-term outlook. Indonesia, the world’s largest nickel producer, is considering more aggressive production quota cuts for 2027 through its annual RKAB approval system, following concerns that excessive output has contributed to a global surplus estimated at approximately 800,000 tonnes by Indonesian officials. The National Economic Council has also backed supply restrictions, while authorities indicated that future quotas would account for global market conditions and domestic smelter capacity. Additionally, potential production cuts by major producers, including Huayou and Tsingshan, could help moderate supply growth amid elevated exchange inventories. However, persistent oversupply, expanding nickel processing capacity, and slower-than-expected growth in battery demand continue to weigh on the market.
2026-11-05
Nickel Falls on Persistent Oversupply
Nickel fell to around $15,300 per tonne, hovering near its lowest level in over ten months, as persistent global oversupply continued to weigh on prices. Indonesia’s rapid production expansion has kept supply ample, with miners requesting approval for more than 500 million tonnes of nickel ore output in 2027, roughly double the 2026 quota, although the final allocation remains pending. Meanwhile, slower battery-sector consumption growth, partly due to the increasing adoption of lithium iron phosphate batteries, has limited overall demand. The International Nickel Study Group expects the global surplus to widen in 2027, reinforcing the supply overhang. Chinese-operated Indonesian smelters are reportedly considering coordinated cuts, including halving mixed hydroxide precipitate (MHP) output and reducing nickel pig iron production by 20%, potentially tightening supply if the cuts are implemented.
2026-10-23