# Nickel Prices Rebound From 10-Month Lows as Traders Cover Shorts

- URL: https://stocks.freetheai.org/news/nickel-prices-rebound-from-10-month-lows-as-traders-cover-shorts-0becc1
- Published: 2026-10-19T08:00:13Z
- Category: commodities; sentiment: mixed; impact: medium
- Symbols: [MCX:NICKEL1!](https://stocks.freetheai.org/symbols/MCX-NICKEL1!)
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Nickel prices rebounded to around $15,400 per tonne, pulling back from their lowest level in nearly ten months. On domestic markets, Nickel Futures (MCX:NICKEL1!) rose 1.26% to 1,476 INR. The immediate uptick was driven by short covering as traders moved to lock in profits following a prolonged market drop. Easing US Treasury yields also helped lessen worries over tight financial conditions, offering temporary support across raw material markets.

Despite the bounce, broader fundamentals remain challenging for the industrial metal. Storage inventories remain high, while buying from smelters and demand from the stainless steel sector remain weak. Meanwhile, major producing region Indonesia plans to boost output through additional mining quotas and has lowered its October benchmark prices, ensuring that physical supply stays plentiful on global markets.

Investors should monitor upcoming supply-demand imbalances, as the International Nickel Study Group now forecasts a 19,000-tonne global nickel surplus in 2026, reversing a previous deficit projection. That surplus is projected to grow to 70,000 tonnes in 2027, suggesting that persistent oversupply could weigh on long-term price recoveries.

## Key points

- Nickel recovered to near $15,400 per tonne as traders closed short positions after prices touched a 10-month low.
- Declining US Treasury yields provided mild relief to broader commodity prices, aiding the short-term bounce.
- High inventory levels, sluggish stainless steel demand, and lower smelter buying continue to cap price recovery.
- Indonesia is expanding mining quotas and cutting benchmark prices, reinforcing expectations of heavy market supply.
- The International Nickel Study Group expects a 19,000-tonne global surplus in 2026, widening to 70,000 tonnes in 2027.

## Questions and answers

### Why did nickel prices rebound from 10-month lows?

Nickel prices bounced back as traders closed out short positions following a recent decline. A drop in US Treasury yields also helped ease concerns over tight financial conditions, providing brief support to commodity markets.

### What is the supply forecast for global nickel in 2026 and 2027?

The International Nickel Study Group projects a global nickel surplus of 19,000 tonnes in 2026, reversing a previous deficit forecast. The market surplus is expected to expand to 70,000 tonnes in 2027.

### How is Indonesian production affecting the nickel market?

Indonesia is increasing nickel ore output using supplementary mining quotas and lowering its October benchmark prices. This steady growth in supply continues to weigh on the broader market outlook.