Nickel traded around $16,400 per tonne as Indonesia's Morowali Industrial Park instructed tenant companies to reduce nickel pig iron production because of an El Niño-driven water shortage. The affected output is estimated at around 100,000 tonnes, equivalent to nearly 30% of the park's monthly design capacity. IMIP had previously warned that overall production could fall 30% to 40% if alternative water sources were not secured. Nickel Industries' Excelsior Nickel Cobalt project is already expected to operate at 30% of design capacity while water supplies remain constrained. Indonesia accounts for more than half of global nickel supply, making the disruption relevant to stainless steel and battery raw-material markets. Nickel prices remain pressured by weak Chinese demand, elevated inventories and Indonesia's expanded production capacity, while the country has also lowered the benchmark price for low-grade nickel ore to around $24.89 per wet tonne. The ultimate market impact will depend on the drought's duration and whether additional water sources become available.