Nickel Extends Rebound After Indonesia Signals Mine Output Cut
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Article content(Bloomberg) — Nickel advanced for a third day, extending its rebound from an eight-month low on the prospect of reduced supply from top producer Indonesia.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe metal rose as much as 1.5% on Friday, two days after Indonesia proposed cutting nickel ore production in 2026. The government’s work plan budget for next year envisages output of about 250 million tons, down from this year’s goal of 379 million tons.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentThe planned reduction is a response to a slump in nickel prices. The metal, used in stainless steel and electric vehicle batteries, has fallen more than 3% this year and is the only industrial metal on the London Metal Exchange on track for an annual decline. As well as Indonesia, China has raised production at a level outpacing global demand.Article contentArticle contentIndonesia’s plan presents “a risk” for bearish investors at a time when nickel prices have sunk to near the cost of production in the country, said Gao Yin, an analyst at China’s Shuohe Asset Management Co. The exit of investors from arbitrage trades involving base metals such as copper and aluminum might also have contributed to this week’s gains, she said.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentIn addition to the proposed reduction in mining, Indonesia’s Ministry of Energy and Mineral Resources plans to revise its benchmark pricing formula for nickel ore in early 2026, a move that would classify byproducts such as cobalt as separate commodities subject to royalties, Bloomberg Technoz reported, citing Indonesian Nickel Miners Association Secretary General Meidy Katrin Lengkey.Article contentMost industrial metals have risen this year. Copper has gained around a third, hitting a record $11,952 a ton last week, as robust global demand for a metal crucial to the green transition has coincided with supply disruptions and stockpiling of the metal in the US. Article contentNickel rose 1.5% to $14,855 a ton on the LME as of 11:10 a.m. in Shanghai. It has gained more than 4% since closing at $14,263 on Tuesday, its lowest since April 9. Copper slipped 0.4% to $11,732 and aluminum edged down 0.1% to $2,914.Article contentBloomberg Technoz is a partnership between Mayapada Group’s PT Berita Mediatama Indonesia and Bloomberg Media Group, a division of Bloomberg LP.Article content—With assistance from Chandra Asmara.Article contentTrending Tax Court overturns CRA decision to deny bitcoin loss writeoff Taxes Mortgage rates move — but in the wrong direction Mortgage Rates Philip Cross: The sad story of Justin Trudeau’s 'youthful idiots' FP Comment Amid a wave of mortgage renewals, borrowers will have leverage in 2026 Mortgages Posthaste: Here's where home prices plunged the most in tough year for Canada's housing market News Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Tax Court overturns CRA decision to deny bitcoin loss writeoff Taxes Mortgage rates move — but in the wrong direction Mortgage Rates Philip Cross: The sad story of Justin Trudeau’s 'youthful idiots' FP Comment Amid a wave of mortgage renewals, borrowers will have leverage in 2026 Mortgages Posthaste: Here's where home prices plunged the most in tough year for Canada's housing market News