The Indonesian Nickel Industry Forum (FINI) has warned that the newly signed Agreement on Reciprocal Trade (ART) with the US must not disrupt the existing nickel ecosystem, which is currently dominated by Chinese investment. The pact, signed on February 19, mandates that Indonesia implement production restrictions on foreign-owned facilities to align with national mining quotas. Simultaneously, the Indonesian government has slashed the 2026 nickel ore production quota to 260–270 million tonnes (down from 379 million tonnes in 2025) to preserve reserves and combat structural oversupply. Notably, the approved quota for PT Weda Bay Nickel was cut from 42 million tonnes to just 12 million tonnes.

Indonesia's 2026 nickel production might potentially face a severe supply crunch as the government’s 270 million tonne RKAB quota ceiling falls significantly short of the 343 million tonnes required by surging downstream projects. With major mines like Weda Bay facing drastic 71% cuts and administrative bottlenecks paralyzing sales, the market remains in a high-tension deficit, pinning its hopes on a potential July quota revision to stabilize the industry.

New Price Release of "Indonesia Domestic Nickel Ore Shipping Freight, USD/wmt"

As of now, the MHP coefficient (relative to the SMM battery-grade nickel sulphate index) ranges from 83.5% to 84%, and the FOB price of Indonesian MHP is $12,526/mt Ni.

On June 18, the SMM battery-grade nickel sulphate index price was 27,402 yuan/mt, with a quotation range for battery-grade nickel sulphate of 27,400-27,830 yuan/mt. The average price fell slightly compared to yesterday.

After the Indonesia Critical Minerals Conference & Expo 2025​​​​​​​, Wu Chenyu, SMM's Nickel Industry Marketing Director, and Enzo, a nickel industry analyst, led a team of international visitors to visit the Indonesia Branch of Guangdong Brunp Recycling Technology Co., Ltd.

As of now, the MHP coefficient (relative to the SMM battery-grade nickel sulphate index) ranges from 83.5% to 84%, and the FOB price of Indonesian MHP is $12,579/mt Ni.

On June 17, the SMM index price for battery-grade nickel sulphate was 27,503 yuan/mt, with a quotation range for battery-grade nickel sulphate of 27,500-27,930 yuan/mt. The average price fell slightly compared to yesterday.

As of now, the MHP coefficient (relative to the SMM battery-grade nickel sulphate index) ranges from 83.5% to 84%, and the FOB price of Indonesian MHP is $12,615/mt Ni.

On June 16, the SMM battery-grade nickel sulphate index price was 27,577 yuan/mt, with the quotation range for battery-grade nickel sulphate at 27,580-28,050 yuan/mt, and the average price remained stable WoW.