FX.co ★ Nickel Futures Rise on Indonesia Risk

Nickel futures edged up to approximately $17,200 per tonne, making a slight recovery following a one-month low earlier in February. This movement is driven by apprehensions about potential supply challenges in Indonesia. Reports indicate that Chinese smelters in Central Sulawesi have not submitted required investment activity reports, leaving authorities unable to monitor production adequately. Given Indonesia's status as the world’s largest nickel producer, these regulatory oversights have sparked concerns among traders regarding potential export disruptions. Meanwhile, the Philippines’ DMCI Mining Corporation reported a record nickel ore output of 2.0 million wet metric tonnes (WMT) in 2025, with robust shipment levels and benchmark prices rising to $45.7/WMT. The company has set a target of 3 million WMT for 2026, reflecting ongoing strong supply conditions. This dependable supply from the Philippines bolsters market sentiment, ensuring that demand in China can be sufficiently met.