India's NMDC shelves nickel plans amid global oversupply worries

what happened

India's state-owned miner NMDC has paused its plans to enter the nickel business. Two of its officials told Reuters that worries about excess metal supply worldwide, especially in Indonesia, which produces more than 60% of the world's nickel, were a key reason.

One NMDC official said the nickel portfolio is currently frozen because Indonesia has too much supply. The International Nickel Study Group now expects the market to end 2026 in a slight surplus, reversing a deficit forecast made six months earlier, with the surplus likely to grow next year.

NMDC failed to arrange a meeting with Russia's Nornickel despite repeated invitations. The company is interested in Russian nickel assets and securing supply, but did not say why it wanted the meeting. Nornickel declined to comment. India currently imports nickel from China, Japan, Norway and the United States, and receives only small amounts from Russia.

why it matters

For the nickel market, the pullback signals that Indonesian output keeps pressuring prices. Even large state companies are cautious about new projects and supply deals while the surplus persists.

market impact

Nickel: Indonesian oversupply weighs on metal prices and delays new Indian supply deals

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