Nickel Pulls Back from Over One-Month High

Nickel traded around $16,100 per tonne, retreating from a recent over one-month high as persistent global oversupply and subdued downstream demand continued to weigh on prices. The International Nickel Study Group (INSG) projects a surplus of 19,000 tonnes in 2026, reversing its previous deficit forecast, with the excess expected to widen to 70,000 tonnes in 2027 as production outpaces consumption. Philippine nickel ore exports also continued to rise, with Nickel Asia's shipments helping Indonesian smelters offset tighter domestic ore availability. Additionally, demand for nickel sulphate is expected to weaken toward year-end, with limited spot purchases from precursor manufacturers as existing long-term contracts cover much of their raw material needs. Meanwhile, Indonesia's plans to further tighten nickel ore production quotas in 2027 could curb supply growth, following recent indications that allocations may be more aggressive than this year's cuts.

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%.

Nickel traded around $16,300 per tonne, extending its rebound to its highest level since September 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.