26.01.202614:02:33UTC+00Nickel Eases from 19-Month High

Nickel futures settled at $18,500 per tonne, slightly down from the 19-month peak of $19,000 observed in late January, as markets weighed the implications of reduced supply from leading producers following Indonesia's announcement of production cuts. The Indonesian government confirmed it will reduce mining permits to 260 million wet tons of tin ore for the current year, down from 379 million tons the previous year. This move removes a substantial source of global supply amid growing demand for electrification and datacenters in major economies. Nevertheless, the uncertainty surrounding production limits on wet tons provides some operational flexibility for miners, while the absence of detailed production reports from the country's key producers clouds the potential for a definitive supply reduction. This development continues despite Indonesia's ongoing efforts to curtail illegal mining activities. In other regions, persistent surpluses continue to influence the nickel market, with Russia's Nornickel projecting a global nickel surplus of 275,000 tonnes for the year.