FX.co ★ Nickel Falls to Over 1-Month Low

Nickel hovered around $16,600 per tonne, its lowest level since early July, as abundant near-term supply continued to pressure prices. Indonesia imported 11.4 million tonnes of nickel ore from the Philippines between January and July, up from 6.82 million tonnes a year earlier, underscoring sustained feedstock availability for Indonesian smelters despite tighter mining quotas. At the same time, MHP supply has partially recovered as improved sulfur deliveries boosted output at some Indonesian projects. However, weak nickel sulfate prices have compressed payables, indicating that tighter ore availability has not yet translated into a widespread shortage across the processing chain. LME nickel inventories also increased, reaching 268,314 tonnes by the end of August and maintaining a substantial stock overhang. Looking ahead, Indonesia’s 2026 mining quota is reportedly being cut to 260–270 million tonnes from 379 million tonnes in 2025, and producers are considering HPAL output reductions of about 30%, measures that could help limit further downside if enacted.