2025.09.0117:21:18UTC+00Nickel Prices Enjoy Some Respite

Nickel futures climbed to $15,450 per tonne in September, marking a one-month high as production cuts temporarily mitigated the excess supply from leading producers. Specifically, the output of nickel pig iron in Indonesia, the leading global producer, decreased by 1.7% in July, compared to the previous month, due to deferred restarts of certain smelters. Although prices rebounded, they remained confined within a narrow range for the year, hovering near the lowest levels since Indonesia imposed a ban on ore exports in 2020. This prompted major nickel consumers to establish refining operations within Indonesia, resulting in a significant increase in capacity and subsequent supply surpluses. In response, the Indonesian government reduced nickel mining quotas to 150 million tons for this year, effectively cutting global supply by 35% from current levels. Nevertheless, the persistently low bidding prices throughout the year suggest that the market does not perceive these constraints as sufficient to reduce the prevailing oversupply situation.