Indonesia Updates Nickel Ore HPM Coefficient, Expected to Raise Prices and NPI Costs

On April 13, Indonesia announced modifications to the nickel ore HPM (benchmark price) formula, primarily adjusting the nickel ore CF and incorporating pricing formulas for cobalt, iron, and chromium metal elements. According to SMM's calculations, taking 1.2% grade nickel ore as an example, based on the benchmark price as of April 1, the new nickel ore HPM was expected to be raised to $40.13/wmt, compared with the original nickel ore HPM of $17.33/wmt. Currently, SMM's latest Indonesia's local laterite nickel ore 1.2% (delivered-to-port price) average price was $28.5/wmt, lower than the new HPM. Assuming the HPM benchmark price serves as the minimum price for mines, the selling price of 1.2% grade limonite ore after April 15 would equal $40.13/wmt. Based on this calculation, the cost of producing MHP from externally purchased limonite ore would rise by approximately $1,700/mt Ni as a result.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 13 Apr , 2026

Effective April 15, 2026, Indonesia’s ESDM will implement a revised Nickel Ore HPM formula. The Correction Factor (CF) for 1.6% grade ore rises to 30%, decreasing by 1% for every 0.1% drop in nickel grade. Byproducts are now explicitly valued: Cobalt and Iron carry a 30% CF, while Chromium is 10%. Crucially, cobalt will only be factored into the pricing if its content is >= 0.05%, and iron content must be <= 35% to be included in the calculation. HPM Nickel Ore = 【(HMA Nickel * %Ni * CF Nickel Ore) + (HMA Cobalt * %Co * CF Cobalt ) + (HMA Iron Ore * %Fe *CF Iron) + (HMA Chrome Ore * %Cr * CF Chrome)】*（1-MC)