The **Nickel Price** continues its strong start to 2026, trading at **$18,639.14 USD** as of Friday, January 23. The metal has recorded a steady **0.49%** gain over the last seven days, consolidating recent rallies that have pushed year-to-date (YTD) returns to an impressive **11.45%**. Investors are currently digesting major supply-side updates from Indonesia, the world’s largest producer, which have successfully underpinned values near their highest levels in over a year and a half.
Nickel Price
Market Drivers: Indonesia Slashes Output Quotas
The primary catalyst for the recent bullish sentiment is the confirmation that Indonesia is significantly tightening its ore production quotas for 2026. Reports indicate the government has cut production quotas by approximately **34%** compared to last year, targeting a range of 250-260 million tonnes. This strategic move aims to align output with domestic processing capacity and conserve high-grade ore reserves. The market has reacted positively to this “disciplined supply” narrative, which effectively removes the fear of the massive surpluses that plagued the market in previous years.
Complementing the supply tightness is a resurgence in demand from China. Recent data suggests improved buying activity from stainless steel mills and electric vehicle (EV) battery manufacturers. While profit-taking limited gains earlier in the week, the combination of constrained Indonesian supply and recovering downstream demand has created a strong floor for the Nickel Price.
Technical Outlook
Technically, Nickel is trading just shy of the **$18,700** resistance level, which marks a 19-month high established earlier in January. The consolidation of 0.49% this week suggests a healthy pause after the sharp 19.28% rally observed over the last 30 days. Immediate support is forming around the **$18,000** psychological handle. If the price can break and hold above $18,700, analysts expect a test of the $19,000 zone; however, failure to maintain momentum could see a retrace toward the 50-day moving average as the market awaits further clarity on the finalized Indonesian production licenses (RKABs).