JAKaRTA: Nickel extended gains for a fourth day after top supplier Indonesia reaffirmed it’ll sharply cut output this year.

The country will issue production quotas of between 260 million and 270 million tonnes of nickel ore this year, said director general of minerals and coal Tri Winarno. The goal is slightly higher than a previous estimate, but well below the 379 million tonnes targeted in 2025.

Indonesia is trying to boost prices of the metal amid a persistent surplus. Anything below 270 million tonnes is viewed as bullish, said Fan Jianyuan, an analyst with Shanghai-based consultancy Mysteel Global. Quota issuance should be completed by March, he said.

Nickel, used in batteries and stainless steel, has surged more than 20% since mid-December, joining a broad rally in metals, from copper to gold and silver, fuelled by speculative buying and heightened geopolitical concerns.

Earlier this month, Macquarie Group Ltd lifted its 2026 nickel forecast by 18% to US$17,750 a tonne on the London Metal Exchange, citing a sharp decrease in an expected surplus due to constraints on Indonesian quotas.

LME nickel rose as much as 1.7% to US$17,780 a tonne before trading at US$17,710 as of 10:45am in Shanghai. Copper was slightly higher, while aluminum added 0.6%. Iron ore in Singapore edged up to US$100.30 a tonne.