Macquarie: This year, nickel supply is increasingly under threat.

Jim Lennon of the Macquarie Group stated in a report that this year's nickel supply faces downside risks. He said that signals from Indonesia indicating possible cuts to nickel ore supply, as well as supply disruptions in Cuba and Madagascar, suggest that global refined nickel production could decrease by 2.2% this year. He added that if the Middle East experiences the "worst-case scenario," global demand growth could sharply slow down. He further added that in this scenario, Indonesia and other markets reliant on Middle Eastern sulfur would suffer production losses, putting pressure on supply. Macquarie forecasts that nickel prices on the London Metal Exchange will be around $17,000-$18,000 per ton in the coming years. Three-month nickel contracts fell by 0.9% to $17,190 per ton.