Nickel prices jumped sharply after mining operations at Vale Indonesia were suspended due to delays in approving its 2026 work plans and budgets (RKAB), heightening concerns over near-term supply. 

According to the London Metal Exchange (LME), three-month nickel rebounded from a mid-December low of US$14,263/ton to US$17,003/ton by January 5. Supply worries spilled into the stainless steel market as rising raw material costs prompted a major Indonesian producer to raise export offers by US$30/ton on January 6 before suspending quotations to reassess pricing. 

Vale Indonesia confirmed its 2026 RKAB has yet to be approved, forcing a halt to mining across all special mining license areas to remain compliant.

Indonesia’s Ministry of Energy and Mineral Resources said 2026 nickel output will be reviewed under revised RKAB rules aimed at preventing oversupply. While miners may operate up to 25% of planned output until late March, full-year production remains uncertain.