Nickel-related equities posted broad gains during the early trading session on Thursday, driven by fresh supply concerns emerging from Indonesia. XINXIN MINING (03833) climbed 6.49% to HK$2.05, LYGEND RESOURCE (02245) advanced 4.39% to HK$18.31, and CNGR (02579) rose 3.29% to HK$25.72 at the time of writing.

According to market reports, the El Ni帽o phenomenon has triggered drought conditions that are constraining water supply to smelters at Indonesia's largest nickel industrial park. As a result, the facility may be compelled to reduce output by as much as 40%. In an official statement, the park's media relations head Dedy Kurniawan indicated that unless alternative water sources are identified, production cuts ranging from 30% to 40% could become unavoidable.

Industry analysts at a major Chinese brokerage suggest that the nickel sector is entering a phase where long-term allocation value is becoming increasingly apparent, underpinned by a confluence of factors including constrained supply, rising production costs, and differentiated demand patterns. From a corporate strategy perspective, the brokerage recommends keeping an eye on LYGEND RESOURCE, which operates both hydrometallurgical and pyrometallurgical production lines alongside nickel trading activities, positioning it to hedge against process-related volatility. Additionally, CNGR is highlighted for its secured Indonesian nickel feedstock and balanced ramp-up across diversified precursor materials.