Nickel Holds Bearish Momentum

Nickel futures fell to $15,200 per tonne in September, holding its muted momentum since the start of the year as ample supply drove prices do underperform other base metals. Supply remained ample amid the overexpansion of Indonesia's nickel sector since the country blocked the export of ores in 2020. This drove the largest nickel consumers to establish refiners within Indonesia and capacity soared, leading to supply surpluses. The Indonesian government reduced nickel mining quotas by 120 million tons to 150 million this year, cutting global supply by 35% from current levels, although soft bidding prices throughout the year indicated that markets don't see constraints dampening the oversupplied backdrop. Available nickel stockpiles at LME warehouses rose by 55,000 tonnes this year to over 205,000, aligned with robust Chinese refiners in Indonesia.