The London Metal Exchange (LME) nickel futures soared by nearly 9% in a single day, closing at US$18,524/ton on January 6. This surge was due to heavy AI-driven demand and Indonesia’s plan to decrease 2026 mining quotas by nearly 30%. Because nickel accounts for over half of stainless steel production costs, this spike forced a rapid price revaluation across the industry.

Shares of major Taiwanese stainless steel manufacturers, such as Walsin Lihwa and Yieh Hsing, hit the daily limit as a result. With Indonesian suppliers raising quotes and downstream processors adjusting export rates, the market is bracing for a new wave of metal inflation. Market participants expect this upward trend to persist as global supply tightens significantly.