FX.co ★ Nickel Falls Near 1-Month Low

Nickel traded at around $16,700 per tonne in August, retreating to its lowest level since mid-July as expectations of increased supply from Indonesia weighed on prices. The decline followed reports that Indonesia may further ease supplementary RKAB nickel ore quotas, with a major miner expected to secure additional allocations that would substantially boost its 2026 quota and bolster feedstock availability for downstream smelters in the second half of the year. Prices were also pressured by easing concerns over possible disruptions in the Strait of Hormuz, which reduced sulfur costs and, in turn, lowered input cost pressures for nickel processing. At the same time, expectations that Indonesia will continue to regulate nickel ore supply through RKAB quotas, together with elevated production costs, helped provide some support to prices.