26.12.202511:21:07UTC+00Nickel Surges to 7-Month High

Nickel futures in the UK have climbed to $15,600 per tonne, marking their highest point since May. This increase follows a dip to four-year lows at $14,350 on December 16th, as the market reassesses its perspective on an oversupplied landscape. Key to this reassessment, Indonesia, the leading global producer of nickel, has suggested a 34% cutback in nickel production in its 2026 budget. This move is an attempt to address escalating oversupply concerns and miner alerts about declining ore quality. This proposal is the most recent in a series of efforts to manage the excess of nickel supply following significant sector expansion post-2020 when Jakarta prohibited ore exports. Although public initiatives aimed at curbing production have been implemented, enduring surpluses have resulted in nickel futures lagging behind other base metals. For example, Russia's Nornickel has increased its surplus projections for the upcoming year to 275,000 tonnes. Moreover, stockpiles at the London Metal Exchange (LME) have risen significantly by over 90,000 tonnes this year, culminating at 254,600 tonnes by the end of December. On the demand side, while global stainless steel purchasing has remained subdued, this has been counterbalanced by the increasing utilization of nickel in electric vehicles.