04.02.202607:33:14UTC+00Nickel Futures Rise from 1-Month Low

Nickel futures surged to approximately $17,500 per tonne, recovering from a one-month low of $17,000 reached earlier in February, as market participants turned their attention to constricting global supply dynamics. This uptick was primarily propelled by ongoing concerns surrounding nickel supply from Indonesia, the world's leading producer of nickel ore. Indonesia recently confirmed plans to limit mining permits to 260 million wet tonnes by 2026, a significant reduction from last year's 379 million tonnes. This anticipated decrease in nickel feedstock availability is expected to affect both stainless steel and battery production, compounded by enforcement measures against illegal mining activities, which further heighten supply uncertainty. Additionally, prices were buoyed by recent efforts aimed at diversifying supply in the extended term. These include advancements towards establishing a substantial battery-grade nickel refinery in the United States and developments in innovative low-carbon nickel processing technologies in Canada, highlighting transformative changes in the global nickel supply chain beyond the Southeast Asian region.