Nickel traded above $17,900 per tonne, rebounding from a two-month low near $17,700, as renewed concerns over Indonesia’s mining policies bolstered expectations of slower supply growth. Market sentiment was supported by reports that recent quota curbs and changes to ore pricing have sharply increased production costs, prompting Chinese investors to warn that as much as $50 billion in nickel-related projects could be at risk.
These developments have intensified uncertainty around future output growth in Indonesia, which accounts for more than two-thirds of global refined nickel supply. Nonetheless, price gains were capped after Jakarta recently signaled a more flexible stance on production quotas in an effort to maintain industry stability and attract investment.
Further downward pressure stemmed from a persistent inventory overhang, with nickel stocks in London and Shanghai exchange warehouses hovering near multi-year highs, highlighting the market’s ongoing surplus conditions.
