Nickel retreats as Indonesia withholds output cut details

NICKEL prices extended losses after Indonesia failed to specify production reductions that had previously sparked a sharp rally in the battery metal, said Bloomberg News.Three-month futures dropped as much as 4.4% on the London Metal Exchange, following Wednesday’s 3.4% decline from $18,800 per ton, the highest intraday level since June 2024, the newswire reported.Market expectations had centred on Indonesia, the world’s largest nickel supplier, announcing mining quota cuts to rebalance supply and demand. However, the Energy and Mineral Resources Ministry offered no specifics during Thursday’s press briefing. Minister Bahlil Lahadalia stated the figures remain under finalisation.The metal, essential for battery production and stainless steel manufacturing, has climbed nearly 30% since mid-December as part of a broader base metals rally encompassing copper and aluminium. The surge has been propelled by substantial purchasing from Chinese traders alongside heightened geopolitical tensions.Benyamin Mikael, analyst at UOB-Kay Hian Holdings, questioned the sustainability of current pricing levels. “The sustainability of nickel prices remains uncertain, unless quota reductions are implemented in a meaningful and consistent manner,” he wrote. He noted that near-term impact from planned quotas would likely prove limited, as most existing investment commitments carry exemptions for the next one to two years.Nickel traded 3.4% lower at $17,285 per tonne on the LME at 2:04pm Shanghai time. Other base metals also weakened, with copper declining 1% to $12,775 per tonne.The lack of concrete policy detail has dampened investor enthusiasm that initially drove prices towards multi-month highs.The post Nickel retreats as Indonesia withholds output cut details appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com