FX.co ★ Nickel Inches Higher from 2-Month low

Nickel futures rose to $15,200 per tonne, recovering from the over two-month low of $14,780 reached on June 23rd. This upswing comes as the market evaluates the impact of Indonesia’s recent output cuts on alleviating the metal's current oversupply in major exchanges. The Indonesian government has slashed its nickel mining quotas significantly, reducing production by 120 million tons to 150 million for this year, which translates to a 35% reduction from current global supply levels. This move is a response to the surge in Chinese smelting projects located in Indonesia, following the country's ban on nickel ore exports in 2020. As of September, Indonesia was home to 44 nickel smelting operations, a sharp increase from just four a decade ago. Meanwhile, the amount of nickel warrants available at London Metal Exchange warehouses has jumped by 40,000 tonnes since the start of the year, reaching 190,000 tonnes. Additionally, the base metals market is being influenced by uncertainty regarding whether the White House will choose to reimplement aggressive tariffs against its trading partners by the July 9th deadline.