The Indonesian government has drastically cut the production quota for PT Weda Bay Nickel, the world's largest nickel mine, to 12 million tons this year, a more than 70% reduction from the 42 million tons target for 2025. This has triggered market expectations of tightening supply, pushing LME nickel prices up for the fourth consecutive day, nearing US$18,000 per ton during trading.

The mine, located in North Maluku province, is jointly owned by Tsingshan Holding, Eramet, and PT Antam. The production cuts could impact its planned expansion to 60 million tons and affect raw material supplies to surrounding industrial parks.

In recent years, Indonesia has stabilized nickel prices by controlling production. After capacity expansion led to price declines, this production cut is seen as a crucial means of reviving the market. The Ministry of Energy and Mineral Resources stated that the final quota is still under evaluation, but the market generally expects it to change the global nickel supply and demand structure.