Potential cuts to Indonesian nickel mine output could remove more than a third of global supply from the market, according to Macquarie Group, presenting a significant upside risk to prices.
The Indonesian government is weighing deep cuts to nickel mine quotas from 272 million tons in 2024 to as low as 150-million tons this year, Bloomberg reported last month. That would be 40% lower than Macquarie’s base case, leading to a drastic reduction in output of the battery metal.