Indonesian MHP Nickel and Cobalt FOB Prices Drop, High-Grade Nickel Matte Rises

According to SMM data, on September 24, the average price of SMM battery-grade nickel sulphate fell by 35 yuan/mt from the previous day.

Indonesian nickel ore CIF average prices were broadly stable across the main grades: · 1.2% Ni: CIF average price at $26.5/wmt, unchanged · 1.3% Ni: CIF average price at $28.5/wmt, unchanged · 1.4% Ni: CIF average price at $51.8/wmt, unchanged · 1.5% Ni: CIF average price at $58.5/wmt, unchanged · 1.6% Ni: CIF average price at $63.4/wmt, unchanged In the downstream market, nickel pig iron production at several RKEF smelters in Indonesia Morowali Industrial Park (IMIP) has been reduced due to water shortages linked to El Niño. SMM's latest survey found some production lines operating at around 30–40% of normal levels from September 22. IMIP confirmed that some smelters have reduced production, while operations have not been fully halted and alternative water supplies are being explored. Meanwhile, the market continues to monitor supplementary 2026 RKAB approvals. Additional quotas are gradually entering the market, but the total additional allocation has yet to be officially disclosed. The latest developments have shifted market attention from quota approval itself toward how quickly approved quotas translate into actual ore production and deliveries. The revised nickel ore HPM formula under Kepmen ESDM No. 363.K/MB.01/MEM.B/2026 has been effective since September 15, with the corrective factor for 1.2% Ni limonite reduced from 26% to 14%. The revised formula places 1.2% Ni HPM at around $24.89/wmt, significantly closer to current market prices.