【SMM Nickel Flash】Indonesia Water Shortage Pressures Nickel Industry in Luwu

Published: Aug 26, 2026 11:42

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Prolonged dry weather has tightened water availability in Luwu, South Sulawesi, limiting water and power supply to certain industrial facilities. As a result, some nickel and metallurgical operations have reduced operating rates, affecting production.

For the nickel industry, continued water shortages could further constrain smelter utilisation and impact nickel output in the Luwu area. The impact remains localized for now, but further deterioration in water availability could lead to additional production disruptions.

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