Indonesian MHP Nickel and High-Grade Nickel Matte Prices Fall, Cobalt Rises on May 8

On May 8, Indonesia’s Directorate General of Mineral and Coal under ESDM held a public consultation on the proposed PP 19/2025 amendment, covering royalty adjustments for several minerals. For nickel ore, the proposal lowers the lowest HMA threshold from below $18,000/mt to below $16,000/mt, and the top threshold from $31,000/mt and above to $26,000/mt and above. The structure would expand from five to six brackets, with rates ranging from 14% to 19%. Based on today’s nickel HMA of $17,802/mt, the applicable nickel ore royalty would rise from 14% to 15% if implemented. The proposal also adds a 2% royalty on cobalt in nickel matte and non-nickel smelting products, and a 2.5% royalty for Alloy Pig Iron. Whether this affects mainstream NPI depends on Indonesia’s final product classification.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 08 May , 2026

[SMM Nickel Flash] May 8: On the supply side, the sentiment to hold prices firm remained strong, premiums for high-grade resources were still evident, and the structural divergence in overall supply intensified. On the demand side, steel mills were cautious in purchasing, enterprises that had already restocked before the holiday showed low willingness to purchase, and acceptance of high price quotes was weak. The market overall presented a standoff pattern of firm quotes, cautious purchasing, and limited transactions, with prices likely to fluctuate at highs and move sideways in the short term.