FX.co ★ Nickel Remains Under Pressure from Ample Supply

Nickel was trading at about $15,600 per tonne, hovering near a more than nine‑month low of $15,510, as persistent oversupply and a stronger US dollar continued to pressure prices. LME inventories remained high at roughly 283,000 tonnes in early October, highlighting ample supply despite some production disruptions. At the same time, Indonesian nickel ore benchmarks declined and premiums turned negative, further reflecting weak market conditions.

The dollar index recently climbed to its highest level since April 2025, and growing expectations of a Federal Reserve rate hike in December added additional headwinds for dollar‑denominated metals. Overnight losses in Chinese nickel and stainless steel prices also signaled ongoing softness across the broader metals complex.

Meanwhile, Indonesia is weighing a moratorium on new smelters producing semi‑finished nickel products in an effort to address an estimated global surplus of 2.5 million tonnes. If enacted, these restrictions could limit future capacity growth and potentially tighten supply over the longer term.