(Feb 11): Nickel extended gains for a fourth day after top supplier Indonesia reaffirmed it’ll cut output sharply this year.
The country will issue production quotas of between 260 million and 270 million tonnes of nickel ore this year, director general of minerals and coal Tri Winarno said. The goal is slightly above a previous estimate of between 250 million and 260 million tonnes but significantly less than the 379 million tonnes targeted in 2025.
Indonesia is trying to boost prices of the metal amid a persistent surplus. Though higher than the earlier estimate, volumes below 270 million tonnes are still viewed as bullish for global prices, said Fan Jianyuan, an analyst with Shanghai-based consultancy Mysteel Global, adding that quota issuance should be completed by March.
Nickel, used in batteries and stainless steel, has surged more than 20% since mid-December, joining a broad rally in metals, from copper to gold and silver, fuelled by speculative buying and heightened geopolitical concerns.
Earlier this month, Macquarie Group Ltd lifted its 2026 nickel price forecast by 18% to US$17,750 a tonne on the London Metal Exchange, citing a sharp decrease in an expected surplus due to constraints on Indonesian quotas.
See also: Copper rebounds from two-day slump as metals selloff eases
LME nickel was trading up 2% at US$17,835 a tonne as of 6:45 a.m. London time, having earlier risen as high as US$17,910. Copper gained 0.2% to US$13,138 a tonne and aluminium rose 0.7% to US$3,114. Iron ore in Singapore declined 0.2% to US$100 a tonne.
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