Nickel prices on the Asian commodity exchange, SHFE, saw a significant rise on Thursday. The leading nickel contract, SHFE.NI2503, increased by nearly 3.4%. Similarly, the spot market price for nickel in China also saw an increase of over 1.5%.

The primary driver behind this price surge is likely the announcement of a reduction in mining quotas for Indonesian nickel ore in 2025 and 2026. Additionally, potential new export restrictions on nickel products from Indonesia may have also contributed to the rise.

LME Nickel Prices on the Rise

Nickel prices on the London Metal Exchange (LME) have also seen an uptick, with the 3-month nickel contract rising by as much as 1.7% in today’s trading, following an almost 1.9% increase yesterday.

Asian and European Stainless Steel Prices to Increase

Several major Taiwanese stainless steel producers have announced price hikes for February, particularly for the 300 series. Following the rise in nickel prices, spot market prices for stainless steel in China have also increased. Additionally, European stainless steel producers are reportedly targeting price hikes.

Stainless steel futures on the SHFE also saw a rise of approximately 0.7% in today’s trading.