[SMM Nickel Market Flash] New HPM Pass-Through Could Push Some Indonesian RKEF Operations into Loss

Published: May 25, 2026 17:51

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Some Indonesian RKEF operations could swing into loss-making if the new HPM benchmark pricing mechanism is fully passed through downstream. The report said the revised Harga Patokan Mineral formula could reset the nickel cost curve higher across the industry, while ongoing supply-chain disruption may further reshape margin distribution in Indonesia’s nickel sector. It added that producers with stronger cost positions and integrated operating models are likely to remain better insulated, while broader margin pressure across the sector could ultimately support a supply-led recovery in nickel prices.

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