Nickel futures have fallen to $15,825, marking a five-week low due to a surge in supply. Indonesia, now responsible for over half of the world’s nickel production, has significantly increased output in recent years, which has contributed to declining prices and the closure of nickel producers in other regions. In addition, an expected 928,000 tons of new capacity will come online within the next three years, mainly focused on supplying electric vehicle (EV) batteries. As the Indonesian government projects that nickel prices will stabilize at these levels, they anticipate that the launch of new plants will effectively meet the rising demand while maintaining strong supply.
Since the start of 2024, nickel prices have rebounded by $422 per metric ton, reflecting a 2.58% increase in trading based on contracts for difference (CFD) that align with the benchmark market. Analysts forecast nickel will trade around $16,417.27 per metric ton by the end of this quarter, with projections suggesting a decline to $15,414.66 over the next twelve months.