Nickel market could turn deficit due to Indonesia quota, says Macquarie

From PearTree

Nickel prices could climb further this year as a global supply shortage caused by top producer Indonesia’s decision to limit its production starts to bite, potentially sending the market into a deficit this year, according to Macquarie Group.

In December 2025, the Indonesian government announced significantly tighter and more regulated nickel supply quotas to combat a global supply glut and boost depressed prices this year. Since then, prices of nickel metal as well as nickel pig iron (NPI), nickel sulfate and nickel ore have all gone up.