International nickel prices have recently rebounded, with London Metal Exchange (LME) nickel prices climbing back above the US$16,000/ton mark, and nickel pig iron prices have gradually stabilized.
LME nickel futures closed at US$16,353/ton last Friday, indicating a recovery from previous lows around US$15,000/ton.
Indonesia, the world’s largest nickel producer, has again signaled a tightening of nickel ore supply, planning further reductions in its 2027 nickel ore production quota (RKAB) in an attempt to alleviate the global nickel oversupply problem, adding uncertainty to the long-depressed nickel price and stainless steel raw material market.
While the rebound in raw material prices has provided support for stainless steel prices, supply remains relatively abundant. Whether prices can continue to rise depends on steel mill procurement and Indonesia’s production cuts.