Nickel prices moved higher on Tuesday after reports of output reductions in Indonesia heightened concerns about global supply availability.
Benchmark three-month nickel contracts on the London Metal Exchange increased 0.4% to $18,567 per metric ton by 08:17 GMT.
Market sentiment was supported by news that Tsingshan Group had instructed nickel pig iron producers at its Weda Bay industrial hub to scale back production levels in order to allocate more electricity capacity to aluminium operations.
The Indonesian industrial site hosts both nickel pig iron facilities and aluminium smelters operated by Tsingshan, with both businesses relying on captive coal-powered energy infrastructure.
The development underlines how Tsingshan’s continued expansion into aluminium production is starting to compete with its nickel operations for energy resources, fuelling concerns that tighter nickel supply could emerge in the market.
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