Nickel Stocks Rally in Morning Session as Indonesia Backs Prices

Stock News
02/25

Nickel-related stocks rose broadly during the morning trading session. At the time of writing, LYGEND RESOURCE (02245) gained 8.33% to HK$29.64, XINXIN MINING (03833) climbed 3.42% to HK$2.72, and CNGR (02579) advanced 3.4% to HK$38.28. The uptick follows reports of a landslide at a nickel mining hub in Morowali, Indonesia, which resulted in one fatality and swept away several excavators, bulldozers and dump trucks. According to analysis by Founder Securities, the incident is expected to affect nickel output in Indonesia. Given the Indonesian government's supportive stance on nickel prices, it is anticipated that nickel prices may remain above US$18,000 per tonne. The Indonesian government is projecting nickel ore quotas of 250–260 million tonnes for 2026, a drop of more than 34% compared to the 379 million tonnes allocated for 2025. Guosen Securities noted in a report that Indonesia is the world's largest nickel ore supplier and maintains a well-established quota system. The government is intentionally using policy adjustments to raise the threshold and costs for nickel mining. The brokerage believes that future nickel price movements will largely depend on adjustments to Indonesia's nickel ore quotas, and does not rule out the possibility of an extreme tightening of supply by the Indonesian government as a potential black swan event.

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