The price of nickel rose to a 15-month high amid reports that Indonesia is tightening control over metal production volumes.
The price of nickel for delivery in three months rose 6.1% during trading on Tuesday to $18,045 per ton, the highest since October 7, 2024.
“Indonesia’s tightening of production controls through a slower quota approval process and planned quota reductions in 2026 is a fairly effective factor in price growth,” said ING analyst Eva Manti.
She notes, however, that the increase in nickel prices is unlikely to be sustainable, as the market is still expected to see a significant supply surplus in 2026.
The day before, Indonesian publication Bisnis.com reported that the country’s authorities had allowed mining companies to temporarily focus on previously approved metal production quotas for 2026 while new quotas are under consideration.
Nickel is used in the production of stainless steel and for nickel plating. Nickel is also used in the manufacture of batteries, in powder metallurgy, and in chemical reagents.
