NI=F: Nickel Prices Hit Two-Year Peak Amid Indonesian Supply Constraints and G

Nickel Prices Hit Two-Year Peak Amid Indonesian Supply Constraints and Geopolitical Tensions

Apr 27, 2026 02:32 UTC

NI=F

Short term

Nickel prices reached a nearly two-year intraday high on the London Metal Exchange (LME), driven by a convergence of supply-side shocks in Indonesia and broader geopolitical instability. The rally reflects growing concerns over the availability of the metal, which is essential for high-performance battery production. The price surge is primarily fueled by reduced mining quotas in Indonesia, the world's leading nickel producer, alongside a critical global shortage of sulfur. Sulfur serves as a vital input for the production of mixed-hydroxide precipitate (MHP) in Indonesia and is equally critical for copper leaching operations across Africa. Since the onset of the conflict involving Iran, LME nickel futures have climbed approximately 10%. The war has triggered a spike in sulfur prices, raising fears of systemic disruptions to the global mining infrastructure and refining processes. While nickel sees strong gains, other base metals have shown mixed performance. Traders are currently weighing these supply constraints against reports that Iran has submitted a proposal to the United States to reopen the Strait of Hormuz, a move that could potentially ease regional tensions and stabilize commodity markets.

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Nickel Prices Hit Two-Year Peak Amid Indonesian Supply Constraints and Geopolitical Tensions

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