Nickel traded around $15,400 per tonne, rebounding from its lowest level in nearly ten months as traders covered short positions after the recent selloff. A pullback in US Treasury yields also eased fears of tighter financial conditions, offering some support to commodity prices.
Even so, the broader outlook remained pressured by elevated inventories, subdued stainless steel demand, and rising ore supply from Indonesia. Lower Indonesian nickel ore benchmark prices for October, together with plans to ramp up production under supplementary mining quotas, reinforced expectations of abundant supply.
Adding to the bearish picture, the International Nickel Study Group shifted its outlook and now projects a global surplus of 19,000 tonnes in 2026—reversing an earlier deficit forecast—with the surplus expected to widen to 70,000 tonnes in 2027. Weak underlying demand was further highlighted by reduced purchasing activity from smelters.
