Indonesian Nickel Producer Ceria Nugraha Plans to Expand Ferronickel Capacity Despite Global Oversupply Forecasts

PT Ceria Nugraha Indotama, an Indonesian nickel producer, plans to expand its ferronickel production capacity despite forecasts of a global nickel oversupply in the coming years. The company recently launched its Rectangular Rotary Kiln Electric Furnace in April, capable of producing 63,200 metric tonnes of ferronickel annually.

An additional phase of production, requiring about $200 million in investment, is under consideration, with construction potentially starting later this year pending successful funding from financial institutions, according to Corporate Secretary Imelda Kiagoes at a Shanghai Metals Markets conference.

While industry experts expect a prolonged surplus in the nickel market due to increased supply and slower demand growth, particularly in stainless steel and battery sectors, Kiagoes noted that Ceria’s ferronickel—containing 22% nickel—still sees demand in Europe and the U.S.