Indonesia Reportedly Set to Lift Nickel Ore Quotas, LME Nickel Drops Over 2%
0xBroomberg
LME nickel futures fell as low as $16,750 per tonne — down 2.1% — after reports that Indonesia plans to grant a major miner "tens of millions of tonnes" in extra ore quotas, raising the prospect of fresh supply pressure from a country that accounts for 60% of global output.
How far did nickel fall, and where is it now?
LME nickel hit an intraday low of $16,750 per tonne, down 2.1% — the lowest since mid-July.
By 12:27 Singapore time, the price had pared losses to $16,825, a decline of 1.7%.
Year-to-date, nickel is roughly flat. This means → the drop is not a trend acceleration but a single supply-side headline breaking a sideways range.
What triggered the sell-off?
Shanghai Metals Market (SMM) reported that a large Indonesian nickel miner will receive an additional quota of "tens of millions of tonnes" of ore in the second half.
The report did not name the miner; Indonesia's Energy and Mineral Resources Ministry declined to comment.
In plain terms = one unconfirmed report with key details missing — yet the market sold first and asked questions later, a sign that traders are acutely sensitive to any hint of Indonesian supply expansion.
Why does Indonesia's policy matter so much for nickel?
Indonesia is the world's largest nickel producer, accounting for roughly 60% of global output. This means → any shift in its supply policy directly reshapes the global nickel supply-demand balance.
Bloomberg reported in June that Jakarta was considering allowing a significant increase in nickel production this year.
This reflects a broader policy pivot: Indonesia appears to be moving from output caps designed to support prices toward higher volumes aimed at defending market share. If the latest quota report is confirmed, supply pressure on nickel will intensify further.
Content is for reference only, not financial advice.