Nickel traded around $16,830 per tonne, rebounding from a six‑month low near $16,300 as supply concerns eased. Indonesia reiterated that it will not approve a broad increase in nickel production quotas, limiting any additional allowances to smelters facing raw material shortages. This stance reinforced expectations of relatively tight ore supply, as the government aims to prevent oversupply and stabilize the global nickel market while permitting only targeted production growth.
At the same time, renewed tensions in the Middle East kept oil prices elevated and sustained worries over sulfur availability—a key input for Indonesia’s nickel processing sector—adding further support to prices. However, upside remained constrained by weak physical demand: trading in high‑grade nickel pig iron was subdued, downstream restocking stayed limited, and nickel ore prices continued to soften amid ample inventories and ongoing supply.
