[SMM Nickel News Flash] Indonesia Released New HPM Formula, SMM Estimated MHP Production Cost Expected to Rise by About $1,700/mt Ni

Published: Apr 13, 2026 19:01

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On April 13, Indonesia announced modifications to the nickel ore HPM (benchmark price) formula, primarily adjusting the nickel ore CF and incorporating pricing formulas for cobalt, iron, and chromium metal elements. According to SMM's calculations, taking 1.2% grade nickel ore as an example, based on the benchmark price as of April 1, the new nickel ore HPM was expected to be raised to $40.13/wmt, compared with the original nickel ore HPM of $17.33/wmt. Currently, SMM's latest Indonesia's local laterite nickel ore 1.2% (delivered-to-port price) average price was $28.5/wmt, lower than the new HPM. Assuming the HPM benchmark price serves as the minimum price for mines, the selling price of 1.2% grade limonite ore after April 15 would equal $40.13/wmt. Based on this calculation, the cost of producing MHP from externally purchased limonite ore would rise by approximately $1,700/mt Ni as a result.

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