Nickel rallies to near two-year peak on Indonesia supply worries
Tuesday, April 28 2026 - 08:29 AM WIB
Nickel prices rose to their highest level in nearly two years on Monday, supported by concerns over supply from top producer Indonesia and tight availability of key inputs used in processing.
Benchmark nickel on the London Metal Exchange climbed 2.3% to $19,445 per metric ton by 0900 GMT, after earlier touching $19,470—the highest level since June 2024.
Indonesia has set its nickel ore production quota, known as the RKAB, at 260 million to 270 million tons for 2026. The Indonesian Nickel Industry Association (FINI) has estimated demand at 340 million to 350 million tons, pointing to a potential supply gap.
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Delays in RKAB approvals for some mining companies have also raised concerns over near-term ore availability for smelters.
Supply risks are further compounded by limited availability of sulphur, a key input in high-pressure acid leach (HPAL) processing used to produce battery-grade nickel.
On the demand side, improving consumption prospects in China, the world’s largest nickel consumer, have provided additional support. Seasonal restocking by stainless steel producers and continued growth in the electric vehicle battery sector are also contributing to firmer sentiment.
Indonesia’s dominant role in global nickel supply means policy decisions and production levels in the country remain a key driver of price movements.
Editing by Reiner Simanjuntak