Glencore, Anglo American report lower nickel output in Q1CY'26 due to production disruptions

• Indonesia policy tightening supports nickel prices
  
  
• Higher costs and supply concerns reshape market sentiment
  
  

SteelDaily: Global mining majors Glencore and Anglo American reported lower nickel production in Q1 2026, even as strengthening nickel prices and tightening Indonesian supply controls supported market sentiment and improved pricing conditions.

Glencore's nickel production declined 9% y-o-y to 17,200 t in Q1, impacted by shipment disruptions linked to the 2025 furnace outage at its Sudbury smelter in Canada and scheduled maintenance at its Murrin Murrin operations in Australia. Integrated Nickel Operations (INO) output dropped 11% to 9,300 t, while Murrin Murrin production fell 6% to 7,900 t.

Despite lower output, average LME cash nickel prices during Q1 rose 11% y-o-y to around $17,338/t, supported by Indonesia's tighter mining quota controls, revised RKAB approvals, and higher nickel pig iron (NPI) costs. Market participants noted that Indonesia's ore supply restrictions continue to tighten global nickel availability, supporting alloy prices.

The company also highlighted rising operating costs linked to disruptions in diesel, sulphuric acid, and energy supply chains amid ongoing Middle East geopolitical tensions. However, stronger copper prices helped offset pressure from weaker nickel output.

Meanwhile, Anglo American's nickel production declined 7% y-o-y to 9,100 t due to maintenance at its Barro Alto and Codemin operations in Brazil. The company's average realised nickel selling price increased 7% y-o-y to $6.71/lb during the quarter.

Industry participants are closely monitoring Anglo American's ongoing exit from the nickel business as part of its broader portfolio restructuring strategy focused on copper. The company confirmed that its nickel business divestment remains under regulatory approval procedures.

Market sentiment in the nickel sector remains firm amid tightening Indonesian ore availability, elevated raw material costs, and growing concerns over future supply growth. Participants noted that rising energy, freight, and reagent costs continue to pressure nickel producers globally, particularly battery-grade nickel operations.

Outlook

Nickel prices are expected to remain supported in the near term amid Indonesian mining restrictions, elevated production costs, and supply-side uncertainties. However, market participants continue to monitor demand recovery from the stainless steel and battery sectors alongside further developments in Indonesia's nickel policy framework.

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