2025.09.0813:19:49UTC+00Nickel Holds Bearish Momentum

Nickel futures declined to $15,200 per tonne in September, continuing the subdued trend observed since the year's outset as abundant supply led to an underperformance compared to other base metals. The supply situation remained robust due to Indonesia's significant expansion in its nickel sector following its 2020 ban on ore exports. This policy prompted major nickel consumers to develop refining operations within Indonesia, greatly increasing capacity and resulting in supply surpluses. In response, the Indonesian government has reduced nickel mining quotas to 150 million tons this year, a 35% decrease in global supply compared to current figures. Despite this reduction, low bidding prices throughout the year suggest that the market doesn't anticipate supply constraints diminishing the oversupply issue. Concurrently, nickel stockpiles in LME warehouses have grown by 55,000 tonnes this year, reaching over 205,000 tonnes, reflecting the strong output from Chinese refineries in Indonesia.