London Metal Exchange (LME) nickel prices rebounded by more than US$700 across four sessions to exceed US$16,200 per ton, driven by reports that major Chinese nickel producers in Indonesia, including Tsingshan and Huayou Cobalt, plan coordinated output reductions.
Industrial water shortages from El Niño in Indonesia’s Morowali Industrial Park also reduced rotary kiln electric furnace (RKEF) line loads, assisting price growth.
However, fundamental market oversupply continues. Indonesia revised its 2026 RKAB nickel mining quota upward to approximately 290 million tons. In addition, Chinese stainless steel output dropped by 4.97% in September to 3.555 million tons, with October production scheduled down by another 1.16%.
The International Nickel Study Group (INSG) revised its 2026 global primary nickel balance from a 32,000-ton deficit to a 19,000-ton surplus. Market analysts said future price direction depends on finalized production cuts.