Reducing quotas for nickel production in Indonesia in 2025 could lead to a 35% collapse in global supply, reported ag. Bloomberg, citing a document from the Australian financial group Macquarie, which it has.
According to him, the Indonesian government is considering reducing quotas from 272 million to 150 million tons per year. Macquarie experts believe that such a significant reduction is unlikely, but if such measures are taken, global nickel supply would fall by a third. Reducing nickel production will lead to an increase in metal prices, the agency explains.
In March 2024 The Financial Times newspaper wrote that nickel prices fell by 30% in 2023 due to increased supply from Indonesia and reduced global demand. More than half of world nickel production, according to the publication, is unprofitable at current prices of about 16,500 USD per ton. Earlier, the international rating agency Fitch Ratings lowered its forecasts for world nickel prices. In 2024, it was lowered to 17 USD/ton (previously - 18,000 USD/ton), for 2025 - to 16,000 USD/ton (previously - 17,000 USD/ton). For 2026, the forecast was maintained at 15,000 USD/ton.