【SMM Nickel Flash News】Declining Ore Grades Tighten Indonesia's Nickel Supply, While Inventory Overhang Caps Prices

Published: Aug 3, 2026 18:01

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Indonesia's nickel industry is facing depletion of high-grade laterite resources continues to reduce average ore quality. It is expected that the country's average nickel ore grade will decline by a further 4–5% in 2026. For example, although transactions may be priced as 1.50% Ni ore, the actual delivered ore grade may average only around 1.43–1.44% Ni. Although the decline appears modest, lower ore grades require miners to process significantly more material to produce the same amount of contained nickel, increasing stripping ratios, raising mining costs, and tightening the supply of premium-grade ore for both RKEF and HPAL smelters.

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