[SMM Nickel Market Flash] Indonesia RKEF Utilisation Drops to 76% on Ore Quota Cut; Govt Eyes $18-20K Nickel Range

Published: Jun 7, 2026 12:49

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Indonesia's RKEF smelter capacity utilisation has fallen to 76% from 84% in 2025 after the energy ministry cut the 2026 nickel ore quota to 260–270 million tonnes — below last year's 320 million tonnes output and FINI's demand estimate of 340–350 million tonnes. FINI chairman Arif Perdana Kusuma said several lines in South and Central Sulawesi are running below 50% capacity; smelters are holding minimal output rather than cold-shutting furnaces, which would take months to restart. A member of Indonesia's National Economic Council said the quota was needed to prevent a record surplus, and pointed to $18,000–$20,000/t as the government's target price corridor — cautioning that a significant overshoot above $20,000 would harm nickel end-users.

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