Nickel prices are marching higher due to global supply disruptions.
Indonesia, the world’s largest nickel producer, has asked companies in the Asian nation to reduce their output, sparking supply worries.
The Indonesian government has asked producers to cut their nickel production and redirect electricity toward aluminium manufacturing.
Both nickel production and aluminium smelting are dependent on coal-fired power, which is in short supply amid the ongoing conflict in Iran.
As such, nickel’s price on the London Metal Exchange is up 0.4% to $18,567 U.S. per metric ton on May 19, its highest level in several months.
Analysts say the production adjustment reflects how nickel and aluminium production increasingly compete with one another in jurisdictions around the world.
Nickel is an industrial metal that’s widely used in batteries, including electric vehicle batteries.
Leading nickel producers include BHP Group (NYSE: $BHP) and Glencore (LON: $GLEN).
