FX.co ★ Nickel Futures Rebound

Nickel futures have risen to approximately $17,900 per tonne, recovering from last week's significant downturn due to renewed buying interest. This recovery is being bolstered by growing demand from Chinese stainless steel manufacturers and electric vehicle (EV) battery producers. Concurrently, traders are adjusting speculative positions amid ongoing uncertainties regarding supply from Indonesia, which is the world’s largest producer of nickel. Indonesia has indicated a possible 34% reduction in output by 2026, although final production quotas have yet to be established. Adding to market caution, Vale has temporarily suspended operations at its Pomalaa and Bahodopi mines due to pending approvals, although its flagship Sorowako mine continues to operate. Market participants are attentively monitoring potential policy announcements that could lead to further price fluctuations. Last year, the total of LME-registered and off-warrant stocks increased by 57.6% to 367,310 tonnes, with shadow stocks in Singapore and Kaohsiung contributing significantly to recent volatility, thus limiting upward price movement even as buyers return following the preceding week's price correction.