Nickel prices have recently seen a rise globally amid Russian exports restriction and supply outages

Nickel prices have increased recently due to concerns over potential export restrictions from Russia. President Putin’s suggestion of limiting nickel, uranium, and titanium exports has fueled fears of a supply shortage, as Russia is a key supplier to both China and Europe. With over 20% of nickel in LME-registered warehouses coming from Russia, any export ban could drastically reduce global availability. Last year, Russia sold over 100,000 tons of nickel, and the potential restrictions have shifted the market from oversupply to deficit.

Additional pressure comes from disruptions in global mining operations. Vale SA’s Onca Puma mine in Brazil faced a temporary halt, and Sumitomo Corp.'s Ambatovy mine in Madagascar dealt with pipeline issues. These challenges, along with Russia's possible export ban, are tightening the supply chain. While Indonesia has ramped up nickel production in recent years, it may not be enough to balance out the current supply concerns.

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China’s economic stimulus, including interest rate cuts and property sector support, has further pushed prices upward. As a major consumer, China's increased demand expectations are contributing to the market's bullish outlook. Industry insiders have expressed optimism, expecting more efforts from China to boost consumption.

In the near term, nickel prices are likely to remain elevated due to the ongoing supply disruptions and Russia’s potential restrictions. However, by December, production expansions in Indonesia and Japan could help ease the supply constraints, potentially stabilizing prices.