Nickel hovered near $17,400 per tonne, its lowest level in more than two months, as investors extended profit-taking following a rally above $19,600 in early May. Sentiment deteriorated further as momentum-driven positions were unwound.
Additional downward pressure stemmed from subdued demand in China, where nickel salt transactions remained sluggish and stainless steel production showed only marginal improvement. Elevated exchange inventories reinforced concerns about oversupply in the near term.
On the supply side, uncertainty in Indonesia helped partially offset the bearish tone. Tighter mining quotas, heightened fiscal and regulatory scrutiny, and changes to benchmark pricing have cast doubt on the pace of future output growth. At the same time, reports that Chinese-backed investors are exploring nickel projects outside Indonesia underscored potential shifts in capital flows and the risk of longer-term supply constraints.
