FX.co ★ Nickel Eases from Over One-Month High

Nickel hovered around $16,100 per tonne, retreating from a recent one-month high as persistent global oversupply and sluggish downstream demand continued to pressure prices. The International Nickel Study Group (INSG) now forecasts a surplus of 19,000 tonnes in 2026, reversing its previous projection of a deficit, and expects the surplus to widen to 70,000 tonnes in 2027 as production continues to outpace consumption. Philippine nickel ore exports are also increasing, with shipments from Nickel Asia helping Indonesian smelters offset tighter domestic ore supply. At the same time, demand for nickel sulphate is projected to soften toward the end of the year, with precursor manufacturers limiting spot purchases because their long-term contracts already cover most of their raw material needs. Looking further ahead, Indonesia’s plans to tighten nickel ore production quotas in 2027 could restrain supply growth, following recent indications that quota allocations may be more aggressive than this year’s cuts.