Nickel futures slipped to around $18,590 per tonne, retreating sharply from a three-week peak near $19,220 as investors took profits after the recent rally. Sentiment was further weighed by weak nickel salt trading activity in China and rising inventories at various points in the supply chain, underscoring subdued near-term demand.
Downside, however, was capped by persistent supply concerns in Indonesia. Weda Bay Nickel has halted ore production after reaching its reduced 2026 mining quota and is now seeking an extension, having received an allocation of just 12 million wet metric tons for this year, far below the 42 million tons produced in 2025. The move has amplified worries over future ore availability.
At the same time, India is preparing incentives to support domestic nickel processing, signaling expectations for robust longer-term demand growth for battery materials.
