State-run miner NMDC has put its planned foray into nickel on hold, partly because of concerns about global oversupply in Indonesia, which accounts for more than 60 per cent of global nickel output, two company officials with direct knowledge of the matter told Reuters. The report, published on October 20, 2026, was carried by ETEnergyworld. One of the officials said: "Presently, we have kept the nickel portfolio on hold given that Indonesia is oversupplied." The decision comes as the global nickel market is expected to remain in surplus through 2026.
Reuters had earlier reported that India's state-owned Steel Authority of India (SAIL) and NMDC were looking at boosting nickel supplies from Russia and acquiring coking coal assets. According to the report, NMDC failed to secure a meeting with Russia's Nornickel despite repeated invitations. The official said NMDC was interested in acquiring Russian nickel assets as well as securing supply, but did not indicate the reason for seeking the meeting.
Nornickel declined to comment, and NMDC did not respond to a request for comment. The sources declined to be identified because the plans were private. The broader market backdrop is one of weakening balance.
Reuters cited the International Nickel Study Group, which said last week that the global nickel market is set to end 2026 in a slight surplus. This reverses a deficit forecast made six months earlier, and the oversupply is expected to widen next year. Indonesia, the world's largest nickel producer, has this year cut mining quotas, stepped up environmental controls and adjusted ore pricing to rein in its runaway nickel sector.
India classified nickel as a critical mineral in 2023 and relies primarily on imports to meet its demand. The country is finalising a policy to roll out incentives for processing the metal, which is used by both stainless steel makers and electric vehicle battery manufacturers. According to Reuters, India currently imports nickel from China, Japan, Norway and the United States, among other countries, and only very small quantities from Russia.
Nornickel, the world's largest producer of palladium and a major supplier of nickel and copper, has not been directly targeted by Western sanctions linked to Russia's war in Ukraine. However, it has faced voluntary restrictions from partners, as well as logistical and payment difficulties. NMDC said last year that it was exploring acquisition opportunities for critical minerals in Africa, Australia and South America as part of its global mineral diversification strategy.
The company has also been evaluating overseas coking coal assets for some time. Last year, its chairman said the miner was exploring opportunities in Australia and Indonesia. Sources: Reuters (October 20, 2026); ETEnergyworld; International Nickel Study Group (as cited by Reuters).