Nickel futures climbed above $19,200, reaching their highest level in nearly two years as supply disruptions and tightening raw material availability sustained bullish momentum in the market. Prices were bolstered by mining quota reductions in Indonesia, which have constrained ore supply and heightened concerns over feedstock availability for downstream processors.
Additional upward pressure came from a sulfur shortage tied to disruptions in the Strait of Hormuz, which has increased processing costs for nickel intermediates and tightened supply conditions beyond the mining stage. Market sentiment was further supported by broad-based gains in base metals, with SHFE nickel and related contracts rising amid a weaker dollar and improved risk appetite.
Indonesian stainless steel producers paused their offers ahead of anticipated price increases, signaling the pass-through of higher input costs. Looking ahead, expectations of continued supply discipline in Indonesia are reinforcing the view that tight market conditions are likely to persist in the near term.
