FX.co ★ Nickel Futures Steady Amid Indonesia’s New Processing Hub, Policy Shift

Nickel futures held steady near $15,300 per tonne in late August, remaining within their recent range as investors assessed new policy developments in Indonesia, the world's leading producer. Indonesia's sovereign wealth fund, Danantara, entered into an agreement with China's GEM to establish an expansive nickel processing hub, aiming to secure greater value in the electric vehicle supply chain and emphasizing the nation's downstream ambitions. Concurrently, the Indonesian government eliminated the requirement to adhere to official benchmark prices for mineral and coal sales. This move suggests a shift towards more flexible market-driven pricing, even though tax calculations remain based on the previous framework. These developments indicate significant structural shifts in the nickel trade; however, global markets continue to grapple with persistent oversupply and muted demand, which has kept prices restrained despite initiatives to bolster the sector.