LME nickel futures surged yesterday (March 25), closing at nearly US$17,400 per ton, after Indonesia approved a plan to impose export taxes on nickel and coal, raising concerns over a tighter global supply. 

The move has strengthened market sentiment, as traders anticipate potential disruptions once the policy takes effect, expected as early as April, though final tax details are still under discussion. 

The decision comes amid mounting fiscal pressure driven by rising energy costs and ongoing geopolitical tensions. Analysts caution that the new tax could lead to increased price volatility in the near term, while also reshaping global supply dynamics. 

Market participants are closely monitoring further developments, as the final implementation could influence commodity pricing trends in the coming quarter.