[SMM Stainless Steel Flash] JFE Steel Launches New Electric Furnace to Boost Low-Carbon Stainless Production

Indonesian Finance Minister Purbaya Yudhi Sadewa has announced plans to implement a windfall profit tax and export duties specifically targeting the nickel sector to compensate for rising energy subsidies amid global oil price volatility. While the policy is currently under discussion with the Ministry of Energy and Mineral Resources (ESDM), the government intends to offset these additional costs by providing strategic incentives for domestic downstream industries, particularly battery manufacturing, to ensure high domestic demand and promote the use of local raw materials.

The Indonesian government reaffirmed plans to implement export duties and a windfall profit tax on low-processed nickel products, triggering a sharp rally in global metal markets. The policy aims to curb under-invoicing and smuggling while recouping state subsidies used to build the nation’s downstream industry. Following the announcement, SHFE nickel futures surged over 3.5% today, while LME nickel jumped to approximately $19,900/mt, a 2.1% daily gain. With the cost floor rising, Asian stainless steel futures have now gained over 10% since early April, reflecting a broader bullish trend across base metals.

On May 1, 2026, the U.S. announced it would hike tariffs on EU-made cars and trucks to 25% this week, citing the EU’s failure to uphold the August 2025 trade agreement. The move is widely seen as a retaliation against the EU's proposed 50% MFN tariffs on steel imports. Amidst this escalating friction, major European stainless steel producers are capitalizing on the protectionist wave, projecting a doubling of earnings by 2028. This outlook reflects a strategic bet on surging regional prices and structural supply shortages as EU trade defense measures and CBAM reshape the industrial landscape.