Nickel hovered around $17,000 per tonne, trading near one-month highs amid persistent uncertainty over Indonesia’s production policy. The government’s ongoing review of nickel production quotas remained in focus, as authorities restricted new approvals to smelters facing raw material shortages. This stance has reinforced expectations of tighter ore supply, with policymakers aiming to curb oversupply and stabilize the market.
At the same time, renewed tensions in the Middle East pushed oil prices higher and raised concerns over sulfur availability—a critical input for Indonesia’s nickel processing industry. These factors have increased production cost pressures and added to the upward momentum in nickel prices.
However, upside moves have been capped by weak downstream demand. Soft activity in China’s stainless steel sector and cautious nickel sulfate procurement, amid slower growth in nickel-based battery demand, have weighed on consumption prospects and limited further price gains.
