FX.co ★ Nickel Rebounds From Near 10-Month Low

Nickel was trading near $16,100 per tonne, rebounding from levels close to its weakest point since December 2025, as expectations of tighter Indonesian supply improved the market’s longer-term outlook. Indonesia, the world’s largest nickel producer, is considering steeper production quota cuts for 2027 through its annual RKAB approval system, amid concerns that excessive output has fueled a global surplus estimated by Indonesian officials at around 800,000 tonnes. The National Economic Council has also endorsed supply curbs, and authorities have signaled that future quotas will take into account global market conditions and domestic smelter capacity. At the same time, potential production reductions by major producers such as Huayou and Tsingshan could help slow supply growth in the face of elevated exchange inventories. Nevertheless, persistent oversupply, the continued expansion of nickel processing capacity, and slower-than-anticipated growth in battery demand remain significant headwinds for the market.