Lower production among the world's largest nickel miners in response to a price slump for the metal end up supporting the market.

That's according to Russian metals giantNornickel. London Metal Exchange nickel prices are down around 30% in the year through Friday, primarily driven by burgeoning supply from Indonesia — the world's largest producer of the metal.

Nickel — used in steel making and electric vehicle (EV) batteries — is in oversupply. That coincides with weak demand from the European, Chinese and U.S. stainless steel industries plus a tempered outlook for EV sales growth.

Inflationary pressures also raised miners...