FX.co ★ Nickel Rebounds from Over 1-Month Low

Nickel traded at around $16,930 per tonne, rebounding from a more than one‑month low as the prospect of production cuts at Indonesia’s largest nickel-processing hub fueled concerns over tighter supply.

Indonesia Morowali Industrial Park (IMIP) warned that El Niño–induced water shortages could cut output by 30%–40% if alternative water sources are not secured, raising alarms about global supply. At the same time, several Chinese-backed nickel producers are weighing coordinated production cuts of about 30% at their HPAL plants in response to weak prices and rising operating costs, although no formal agreement has been reached.

Further underscoring the risk of constrained supply, Indonesia’s stricter 2026 mining quota signals lower ore availability, with the cap set at roughly 260–270 million tonnes, down from 379 million tonnes in 2025.

On the other hand, elevated inventories and subdued Chinese demand continue to exert downward pressure on prices, while increased imports of Philippine nickel ore into Indonesia may help partially offset tighter domestic supply.