London Metal Exchange (LME) nickel prices rose above US$16,000 per ton in early November, reaching a six-week high driven by expected tightening raw material supplies. The price rebound gained momentum after reports that the Indonesian government is considering reducing 2027 nickel ore production quotas to address global market oversupply.
Correspondingly, Indonesian nickel pig iron export offers and Chinese domestic transaction prices increased, supporting stainless steel cost structures. Indonesia Tsingshan also raised export quotes.
Although current market sentiment supports short-term stainless steel pricing, market participants remain cautious. Smelters in industrial parks are evaluating delayed investments and production cutbacks due to uncertainties surrounding future ore quota approvals, while rising raw material costs continue to test downstream purchasing acceptance.