Updated
Updated · BusinessLine · Jul 21
Indonesia Weighs 360 Million-Tonne 2026 Nickel Quota as Policy Shift Threatens $17,500 Prices
Updated
Updated · BusinessLine · Jul 21

Indonesia Weighs 360 Million-Tonne 2026 Nickel Quota as Policy Shift Threatens $17,500 Prices

2 articles · Updated · BusinessLine · Jul 21

Summary

  • Indonesia is considering lifting its 2026 nickel mining quota to about 360 million tonnes from 250-260 million, a move that would mark the first meaningful easing of supply restrictions this year.
  • The proposed increase aims to ease feedstock shortages and support production growth, and analysts say it could pressure nickel prices that recently rebounded on expectations of tighter Indonesian policy.
  • Nickel traded around $16,950 a tonne, up more than 1.5% in the past week but down 4% over the past month; BMI expects prices to moderate in H2 even after raising its 2026 forecast to $17,000.
  • Indonesia supplies about 60% of global refined nickel, leaving its quota policy as the market's main swing factor as 2026 balances look tight—INSG sees a 32,000-tonne deficit, while BMI still forecasts a 154,000-tonne surplus.

Insights

With Indonesia curbing quotas and chemical shortages halting production, could a hidden supply chain crisis trigger a massive nickel price spike?
As EV makers abandon nickel for cheaper alternatives, will Indonesia's aggressive grip on global supply ultimately destroy the market it controls?