- Indonesia tightens approvals for new nickel smelters
- LME nickel inventories inch up w-o-w, remain elevated
Nickel prices on the London Metal Exchange (LME) fell 3% w-o-w, with the three-month contract settling at $14,475/t on 21 November, compared with $14,870/t last week. The continued weakness reflects persistent bearish sentiment, limited demand recovery, and oversupply pressures in the global market. LME nickel inventories inched up to 253,950 t, from 252,090 t a week earlier, indicating elevated stock levels.
Market updates
Indonesia’s QMB nickel plant slashes output after safety checks
QMB New Energy Materials, a major nickel and cobalt joint venture in Indonesia, has cut its production by at least half following recent safety checks. These measures come after operational incidents prompted enhanced inspections and a focus on safety standards at key nickel facilities in the region, potentially tightening global nickel supply in the short term.
Indonesia tightens nickel smelter approvals amid sustainability concerns
Indonesia is restricting new nickel smelter investments by strengthening its industrial licensing system to address environmental and market imbalances. While existing and under-construction facilities continue, the freeze aims to rein in rapid, often poorly coordinated growth spurred by Chinese investment, highlighting the need for integrated, sustainable development in the world’s top nickel-producing nation.
Outlook
In the near term, uncertainties surrounding Indonesian ore supply could offer limited support. However, with market fundamentals still dominated by surplus conditions, a meaningful trend reversal remains unlikely. Nickel prices are expected to continue consolidating near the bottom rather than entering a sustained recovery phase.
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