Nickel traded near $16,400 per tonne, hovering close to its lowest level since late December, as expectations of increased Indonesian supply continued to pressure market sentiment. Investors remained focused on reports that Indonesia is considering raising its 2026 mining quota to about 360 million tonnes from roughly 260 million tonnes, effectively reversing earlier production curbs that had supported prices at the start of the year and rekindling concerns about a global oversupply.
The bearish tone was reinforced by Nickel Industries’ plans to ramp up output at its new Excelsior Nickel Cobalt HPAL plant and to expand downstream processing capacity through additional HPAL investments, bolstering expectations of higher future nickel production. At the same time, elevated nickel inventories on both the LME and SHFE continued to indicate abundant refined metal supply, capping prospects for any sustained price recovery.
