Nickel rose to a 15-month high on reports of tightening production controls in Indonesia.
Nickel for delivery in three months rose 6.1% in Tuesday trading to $18,045 a tonne, the highest level since October 7, 2024.
“Indonesia is tightening production controls with a slower quota approval process and planned cuts in 2026 is a fairly effective factor in price growth,” says ING analyst Eva Manti.
However, she notes that the rise in nickel prices is unlikely to be sustainable, since the market is still expected to have a significant oversupply in 2026.
The day before, the Indonesian publication Bisnis.com reported that the country’s authorities have allowed mining companies to temporarily focus on previously approved production quotas metal for 2026, while new quotas are under consideration.
Nickel is used for the production of stainless steel, for nickel plating. Nickel is also used in battery production, powder metallurgy and chemicals.
