Nickel prices surged to their highest level in nearly two years, driven by mining quota reductions in Indonesia, a major producer, and global sulfur shortages. These factors are tightening supply expectations for the key battery metal. Since the onset of the Iran conflict, nickel futures on the London Metal Exchange have risen approximately 10%. The conflict has significantly pushed up sulfur prices, raising market concerns over potential disruptions to global mining supply chains. Risks of interruptions loom for mixed hydroxide precipitate production in Indonesia and copper leaching operations in Africa. Reports indicate Iran has submitted a new proposal to the United States aiming to resume shipping traffic through the Strait of Hormuz, leading traders to assess the possibility of the conflict winding down. Overall, base metal market trends are showing divergence. To support industrial metal prices, Indonesia has substantially cut nickel production quotas, placing pressure on the local nickel mining sector. According to a research report from Jinyuan Futures, market sentiment toward nickel remains generally positive, with the industry anticipating significant production cuts in mixed hydroxide precipitate as a potential catalyst for further price increases. Market data shows nickel prices climbed as much as 1.8% intraday, reaching $19,350 per ton, the highest since June 2024. As of the latest update, nickel prices retreated to $19,260 per ton. Copper prices edged up 0.1% to $13,325 per ton, while tin prices dipped 0.4% to $50,150 per ton.