Nickel price jumps after Indonesia ordered the world’s largest nickel mine to sharply cut production. The move tightens global supply and drives a fourth consecutive day of gains. LME nickel climbed 2% to $17,835 a tonne, reflecting increased investor interest.
Indonesia plans 2026 nickel ore quotas of 260–270 million tonnes, below the 379 million tonnes target for 2025. Authorities manage production through annual RKAB permits and can revise quotas mid-year. PT Weda Bay Nickel will receive just 12 million tonnes, down from 42 million tonnes in 2025.
Nickel Price Jumps Amid Indonesia’s Supply Cuts
Nickel price jumps as Indonesia curbs Weda Bay output, affecting global markets. The mine, owned by Tsingshan Holding Group, Eramet SA, and PT Aneka Tambang, had planned expansion to 60 million tonnes. Instead, it imports ore from the Philippines to meet demand.
The quota reduction responds to persistent global surplus. Indonesia’s production accounted for about 65% of world supply, triggering a two-year price slump. The cuts aim to stabilize the nickel market and encourage higher pricing.
EV and Industrial Demand Influences Nickel Price Dynamics
Nickel price jumps despite weaker-than-expected demand from EV battery manufacturers. Some battery producers are shifting to non-nickel chemistries, moderating consumption. Meanwhile, stainless steel demand continues to underpin nickel prices amid geopolitical tensions.
Macquarie Group raised its 2026 nickel forecast by 18% to $17,750 a tonne. Indonesia also limits thermal coal output by nearly 25%, potentially impacting energy-intensive mining operations. These measures may further tighten global nickel and coal markets.
SuperMetalPrice Commentary:
Nickel price jumps highlight Indonesia’s growing influence on global metals markets. Supply constraints from Weda Bay could strengthen prices for both industrial and battery-grade nickel. Investors should monitor quota revisions and EV sector trends, as shifts in demand and production policy will drive market volatility.
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