Nickel Daily: SHFE nickel futures experience a significant decline influenced by news from Indonesia

On January 8, SHFE nickel futures experienced a significant decline. The most-traded contract SHFE 2602 opened at Yuan 146,500/tonne, plummeted rapidly in the afternoon session and finally settled at Yuan 136,440/tonne, marking a single-day drop of 6.14%. In the nickel ore sector, the 2026 quota remains unclear. However, as approved quotas from 2024 can still be used in the first quarter of 2026, coupled with some inventory carryover, the market shows slight short-term easing. The benchmark price for the second period in January is expected to rise, but the premium outlook is uncertain; overall prices are projected to remain firm. Should Indonesia later confirm a quota tightening, nickel ore prices could surge again.Regarding refined nickel, high prices are suppressing downstream purchasing, while supply also shows weakness. Spot Jinchuan electrolytic nickel remains scarce, leading some downstream users to switch to Sumitomo resources.

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