Last week, nickel prices surged then declined. Early in the week, LME nickel prices were driven up to US $17,510/tonne by positive supply-side developments but then declined, closing around US $17,415/tonne on March 6. Meanwhile, the most-traded SHFE nickel contract traded within a range of Yuan 135,000 to 138,000/tonne.The sharp price fluctuations were primarily influenced by news from the supply side. On one hand, Indonesia lowered its nickel ore production target to 209 million tonnes. Coupled with reduced mining efficiency during Ramadan, a landslide accident at the Tsingshan Industrial Park's tailings pond, and penalties imposed on some mining companies, this reinforced expectations of tight mine supply. On the other hand, the Indonesia Nickel Miners Association (APNI) indicated that applications for RKAB revisions might be submitted in the second half of the year, shaking the previously expectation of supply shortages.