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Cuts to nickel mine output in Indonesia could remove 35% of global supply

The Indonesian government is weighing cuts to quotas from 272 mln to 150 mln tons this year

NEW YORK, January 9. /TASS/. Potential cuts to nickel mine quotas in Indonesia in 2025 could remove up to 35% of global supply, Bloomberg reported citing Austria’s financial group Macquarie.

The Indonesian government is weighing cuts to quotas from 272 mln to 150 mln tons this year. Macquarie experts view cuts of that scale as highly unlikely, but note that if taken, those policies could lead to a drastic reduction in global supply by one third, which presents another upside risk for prices.

Financial Times wrote in March 2024 that nickel prices fell by 30% in 2023 due to a surge in supply by Indonesia and a global demand drop. More than half of the world’s nickel output is loss-making with the current prices of around $16,500 per ton, according to the publication.

Earlier, Fitch Ratings global rating agency downgraded its outlook on global nickel prices. The projection for 2024 was downgraded to $17,000 per ton (from $18 per ton previously) while the outlook for 2025 was lowered to $16,000 per ton (from $17,000 per ton). The outlook for 2026 remained unchanged at $15,000 per ton.