The closure of China's NPI production capacity and the relative prosperity of the Indonesian NPI market have attracted many investors to explore new business opportunities. SMM has also conducted research on the Indonesian NPI market and studied the feasibility of Indonesian NPI projects. At this stage, investing in Indonesian NPI projects is still feasible.
We have introduced about NPI-related supply, demand, and technology. This time, we will focus on the pricing of the Indonesian NPI.
Indonesian NPI pricing is divided into two main types based on the contract type, with long-term contracts making up a higher proportion. Long-term contracts are typically priced based on the SMM quotes and are classified into three tiers based on the nickel content of the NPI products. The average price of NPI in the previous month is used as a reference, and a premium or discount is added to determine the final price. Short-term contracts are priced more arbitrarily. The current raw material costs and expected profit margins are taken into account when pricing these contracts.
By 2025, the Indonesian NPI production capacity is projected to surpass 400,000 mt due to the ongoing expansion plans. This growth in capacity will gradually lower the production costs in the NPI smelting industry, leading to an inevitable decrease in NPI prices in the future.
The declining NPI prices are related to the pure nickel prices. Based on LME and SMM data, after analyzing historical nickel inventories in key regions of China, we can see that nickel inventories in both the LME and China are decreasing. This indicates that China and the global market are consuming a significant amount of nickel, and there is still strong downstream demand for nickel products. Considering the future development of the new energy industry and the support it receives from policies and market demand, investing in the Indonesian NPI market remains feasible, even in a highly competitive environment.
Here are some past NPI project cases analyzed by SMM consulting teams:
Complete Nickel industry chain
Indonesian Nickel supply and price forecast
Analysis of global demand for nickel terminal products in traditional industries
Investment due diligence
Technology due diligence for a NPI production line in Indonesia
Analysis of key players in the market
Analysis of key players in Indonesian RKEF smelting sector
To learn about past project cases and explore customized solutions, you can have a detailed discussion with the SMM Consulting Team.
You can contact Project Manager Jiang Qianchun via phone at 15294607058 or email at jiangqianchun@smm.cn.
