30.01.202611:14:33UTC+00Nickel Declines from Recent Peak

Nickel futures in the UK fell to $17,700 per tonne, following a period near a 19-month peak of $19,000 in January. This drop mirrored declines in other base metals, influenced by a strengthening dollar that prompted the unwinding of speculative positions in the market. Nonetheless, nickel contracts have remained significantly elevated since the beginning of the year due to concerns over potential supply reductions. Jakarta has officially announced plans to reduce mining permits to 260 million wet tons of tin ore for this year, a decrease from 379 million tons the previous year. This reduction is notable amidst increasing demand driven by electrification and datacenter expansion in key economies. However, the imposition of a cap on wet tons has introduced some flexibility for miners' production strategies, compounded by the limited disclosure of production levels from major producers in the country. This situation persists despite Indonesia's ongoing efforts to curb illegal mining operations.