Indonesian nickel ore output for 2026 is set lower than last year despite quota adjustments, tightening supply for ferronickel plants. LME nickel hovered at US$17,200-$17,400/ton last week, failing to sustain a rebound to US$18,000/ton, while Shanghai nickel fell below CNY 140,000/ton, closing at CNY 137,190/ton last Friday.
In contrast, ferronickel prices surged, with 8-12% high-nickel ferronickel reaching up to CNY 1,145 per nickel point and 12-14% Indonesian ferronickel delivered to China at up to CNY 1,145 per point.
Rising ferronickel costs are expected to support stainless steel prices, influencing China and Taiwan’s markets this week.