India's state-run miner NMDC has put its planned entry into nickel on hold, partly because of oversupply concerns in Indonesia, which accounts for more than 60% of global nickel output. Two NMDC officials with direct knowledge of the matter told Reuters, speaking on condition of anonymity, that the decision reflects these concerns. Source: Reuters, reporting by Neha Arora.
Reuters had previously reported that NMDC and fellow state-owned Steel Authority of India (SAIL) were examining ways to increase nickel supplies from Russia and to acquire coking coal assets. India classified nickel as a critical mineral in 2023 and relies mainly on imports to meet its demand. New Delhi is also finalising a policy to offer incentives for processing the metal, which is used by stainless steel producers and electric vehicle battery manufacturers.
Source: Reuters. According to the sources, one NMDC official said: “Presently, we have kept the nickel portfolio on hold given that Indonesia is oversupplied.” The officials declined to be named, citing the private nature of the plans. Source: Reuters.
The outlook for the broader market points in the same direction. The International Nickel Study Group (INSG) said in its latest assessment, released shortly before the Reuters report, that the global nickel market is expected to finish 2026 in a slight surplus. This reverses a deficit forecast the group had issued six months earlier, and it expects the surplus to widen in 2027.
Source: International Nickel Study Group, as cited by Reuters. Indonesia, the world's largest nickel producer, has this year cut mining quotas, tightened environmental controls and changed its ore pricing rules, measures aimed at moderating the rapid growth of its nickel sector. Source: Reuters.
NMDC was unable to arrange a meeting with Russia's Nornickel despite repeated invitations, according to the official cited by Reuters. The official said NMDC was interested in acquiring Russian nickel assets and securing supply, but did not give a reason for wanting the meeting. Nornickel declined to comment, and NMDC did not respond to a request for comment.
Source: Reuters. Nornickel is the world's largest palladium producer and a major supplier of nickel and copper. It has not been directly targeted by Western sanctions linked to Russia's war in Ukraine, but it has faced voluntary restrictions from some partners, as well as logistical and payment difficulties.
Source: Reuters. India currently imports nickel from China, Japan, Norway, the United States and other countries, and only very small quantities from Russia. Source: Reuters.
NMDC said last year that it was exploring acquisitions of critical minerals in Africa, Australia and South America as part of its global diversification strategy. The company has also been evaluating overseas coking coal assets for some time, and its chairman said last year that the miner was looking at opportunities in Australia and Indonesia. Source: Reuters.
The original report was written by Reuters (Neha Arora, with additional reporting by Anastasia Lyrchikova in Moscow) and was republished by Kitco News (kitco.com) on 19 October 2026.
Source: kitco.com