British News Agency

Rising demand from Chinese stainless steel producers and electric vehicle battery makers supported the recovery, while traders adjusted speculative positions amid supply uncertainty from Indonesia, the world’s largest nickel producer.

Indonesia had previously signaled it could cut production by 34% in 2026, but final quotas have yet to be determined.

Vale, one of the world’s largest mining companies, temporarily halted operations at its Pomalaa and Bahodopi mines pending approvals, adding to market caution, although operations at its flagship Sorowako mine continue.

Investors are closely watching for any policy signals that could reignite price volatility. London Metal Exchange (LME) registered and off-warrant stocks rose 57.6% last year to 367,310 tonnes.

So-called shadow stocks in Singapore and Kaohsiung accounted for much of the recent volatility and, despite buyers re-entering the market after last week’s correction, are limiting the upside.