Nickel prices surged to a two-year high amid tight supply after Indonesia cut mining quotas and the war pushed up sulfur costs.

The London Metal Exchange (LME) rallied on news that the giant Weda Bay mine is preparing to suspend production in May. Geopolitical factors involving the Israeli-US conflict with Iran are causing a global sulfur shortage, impacting battery production. Analysts predict nickel prices will continue to rise after the world's largest producer tightened export quotas to maintain prices.

27 April 2569 – The global base metals market is experiencing significant volatility. Nickel prices recently surged to their highest intraday level in nearly two years, driven primarily by cuts in mining quotas in Indonesia, the world's largest nickel producer, coupled with the global sulfur shortage. This has resulted in a severe tightness in the supply of nickel, a key mineral in the electric vehicle (EV) battery industry.

Trading data indicates that: Nickel price The price surged 1.8% to $19,350 per ton, its highest level since June 2567, before retracing to trade at $19,260 per ton in Shanghai on the morning of April 27, 2569. While other types of industrial metals... such as copper Prices edged up slightly by 0.1% to $13,325 per ton, reflecting limited price sensitivity to inputs.

Pressure from Indonesian policy and the suspension of production at major mines.

The nickel supply situation is likely to become more critical after reports that Eramet's Weda Bay nickel mine project in Indonesia is preparing to suspend all operations in May 2569 due to production quota cuts imposed by the government. This exacerbates an existing shortage resulting from the Indonesian government's attempts to control domestic production in order to stabilize global nickel prices.

In addition to quota constraints, Indonesian manufacturers face obstacles in producing Mixed Hydroxide Precipitate (MHP), a key raw material for batteries, because the extraction process requires crucial chemicals that are currently in severe shortage globally.

"The Weda Bay nickel mine project is set to suspend production in May due to quota cuts, a situation that is putting further pressure on the already affected nickel supply."

Geopolitics: A variable accelerating sulfur prices and mining costs worldwide.

A key factor driving prices up more than 10% on the London Metal Exchange (LME). คือ The impact of the escalating conflict between Israel, the United States, and Iran. This war has had a direct impact on the sulfur supply chain, a key component in mining and metal extraction, causing serious investor concerns about disruptions to global mining operations.

Concerns about global mine disruption have become a significant psychological driver in the futures market. Because nickel is not just a common industrial metal, but a "strategic mineral" in the transition to clean energy, the decline in supply, coupled with soaring production costs, is a factor that could lead to a continued upward trend in global nickel prices in the short to medium term.

"Nickel prices have surged about 10% since Israel and the United States launched a war with Iran, a factor that has driven up sulfur prices. It has also fueled concerns about disruptions to global mining operations."

Global nickel prices are entering an era of adjustment driven by production costs and national political constraints, with Indonesia dictating the supply side and conflicts in the Middle East acting as a cost-push variable. This tension will inevitably have a ripple effect on downstream industries as long as the quota issues and shortages of chemical raw materials remain unresolved.

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