[SMM Nickel Flash News] Indonesia Update — October 5, 2026

Weather conditions across major nickel-producing and logistics areas in the Philippines, Indonesia and China are expected to remain generally manageable on October 5–11, with localized weather potentially causing short-term operational disruptions. In the Philippines, Palawan and Surigao may see scattered rain and thunderstorms on October 6–7, while rainfall could increase in Eastern Visayas and Mindanao on October 8–9, posing temporary risks to mine-road transport, ore barging and vessel loading. In Indonesia, Morowali and Konawe are expected to remain relatively stable, with low rainfall and no significant storm activity. Halmahera and Obi may see occasional rain and stronger winds, which could briefly affect marine logistics. In China, major nickel ore receiving ports are expected to remain largely operational, although localized rain and stronger winds could cause brief delays to vessel handling and cargo transportation.

On October 2, protests over mining-related dust and environmental impacts escalated into unrest at PT Astima Konstruksi (PT Askon) in Matarape Village, Morowali Regency, Central Sulawesi, Indonesia. Local media reported that protesters burned several vehicles and excavators, while access to the company's hauling road and jetty was blocked, disrupting material transportation. Police subsequently evacuated Chinese nationals from the site. The incident has raised concerns over potential disruptions to nearby nickel mining and logistics activities. However, as of October 5, no confirmed reports have established the extent of production suspensions or reductions at specific nickel mines. Further attention should be paid to the restoration of transportation access, local security conditions, and any subsequent impact on nickel ore supply.

Froch Enterprise, a stainless steel pipe maker in Taiwan (PoC), reported a marked improvement in first-half profitability. The company said higher nickel prices lifted product prices, boosting both pre-tax and after-tax profit in August. Construction of AI and semiconductor facilities is driving demand for cleanroom, pure water and plant infrastructure piping, and industrial piping now makes up 70% of its product mix. Overseas, Froch decided in 2023 to invest in a plant in Morocco to diversify its production base and target European markets. After earlier schedule adjustments, equipment installation is progressing, with marketing planned for the fourth quarter, trial runs by year-end and commercial production in the first quarter of 2027; the plant is expected to contribute to profit once output stabilises. Following YC INOX's cold-rolling expansion in Türkiye, Froch is likewise placing capacity close to Europe, as pipe makers in Taiwan (PoC) increasingly use third-country bases to reach the European market. With EU quotas tightening and origin now determined by melt and pour, where the Morocco plant sources its stainless coil will decide the origin status, and the quota, its products face on entering Europe.