22.12.202510:31:57UTC+00Nickel Futures Rebound

Nickel futures have increased to approximately $15,000 per tonne in December, reaching the highest point in over a month following a dip to over eight-month lows the previous week. This rise is largely attributed to Indonesia's announcement of a significant decrease in output for 2026. The Indonesian government's plan aims for 250 million tonnes of nickel, significantly lower than this year’s production of approximately 379 million tonnes. Authorities aim to reduce an oversupply that has negatively impacted prices and strained global markets. These proposed cuts come as the global market anticipates a surplus of 209 million tonnes by 2025, potentially expanding to 261 million tonnes the following year, with Indonesia responsible for about 65% of this surplus. Furthermore, Indonesia is planning to revise its benchmark pricing formula for nickel ore, which might involve distinguishing byproducts such as cobalt and implementing royalties, potentially further constricting supply. Analysts anticipate that this production restraint will bolster prices, especially considering that nickel prices are currently close to production costs in key mining areas.