Nickel prices plummeted on Thursday, ending the sharp rally that had been underway since last December. This followed the Indonesian government’s failure to announce nickel production quotas for 2026, sparking concerns that supply restrictions might be lifted. The Indonesian government’s earlier plan to cut mining production quotas for 2026 to prop up prices had driven a more than 30% surge in nickel prices since December, but that rally came to a halt today, with LME three-month nickel futures falling nearly 6% at one point. At a press conference on Thursday, Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia reiterated the government’s plan to cut nickel quotas and stated that quotas would be adjusted to meet the needs of local smelters, but did not provide figures for the reduced 2026 quota levels. Investors have remained skeptical of the Indonesian government’s policies, fearing that the government might ultimately reverse its quota reduction plans, potentially undoing the recent gains.