Reports indicate that Indonesia plans to increase quotas for large mines, leading to a decline in nickel prices.

Market rumors have emerged again that Indonesia will grant higher nickel production quotas to a domestic large-scale mine, which could increase market supply, leading to a drop in nickel prices to the lowest level since mid-July. The maximum decline in nickel prices on the London market reached 2.1%, settling at $16,750 per ton. Shanghai Nonferrous Metals Network reported that this mining company will receive several million tons of additional ore quotas in the second half of the year, but did not specify which miner. A spokesperson for Indonesia's Ministry of Energy and Mineral Resources did not respond immediately to requests for comments. Indonesia is the world's largest nickel producer, with nickel used in stainless steel and battery sectors, accounting for about 60% of global output. Changes in its supply policies can significantly affect market supply and demand patterns. In June, media reported that the Indonesian government was preparing to significantly increase nickel production later this year. As of the time of publication, nickel futures on the London Metal Exchange had fallen 1.7%, priced at $16,825 per ton. Prices have remained relatively stable this year to date.