[Al Price] Will Aluminum Prices Rise If Production Cut Rumors Prove True

On June 24, SMM #1 refined nickel prices fell by 2,150 yuan/mt from the previous trading day. In terms of spot premiums, the average for Jinchuan #1 refined nickel was 1,400 yuan/mt, up 150 yuan/mt from the previous trading day, with premiums for mainstream Chinese electrodeposited nickel brands in the range of -500-400 yuan/mt.

[Nickel Industries: To Acquire Part of PT CNE Stake, Designed Annual Capacity of 28,357 mt Ni, Production Expected in Mid-2027] Nickel Industries announced it has entered into a long-term strategic cooperation and signed a framework agreement with a local Indonesian partner and Indonesian investor PT Jaya Agung Investasi (JAYA) for nickel ore mining and high-pressure acid leach (HPAL) processing. Under the agreement, JAYA will acquire an 85.7% equity interest in PT Chengsheng New Energy (CNE), while under the framework agreement such rights will be acquired by Nickel Industries and the local partner in exchange for a 30% interest in the two IUPs of the Sampala project, namely PT Abadi Nikel Nusantara and PT Erabaru Timur Lestari. PT Chengsheng New Energy owns an HPAL project being developed on the same site as ENC within Indonesia’s IMIP as an expansion of ENC, producing mixed hydroxide precipitate (MHP) for the EV battery supply chain. CNE has an annual capacity of 28,357 mt Ni, with production expected to commence in mid-2027. Nickel Industries’ attributable MHP production is 10,208 mt Ni per annum.

[Nickel Industries: Acquisition of 17.5% Stake in PT TMI Project, MHP to Commence Production in Mid-2027] On June 24, 2026, Nickel Industries announced that it had agreed to invest $169 million to acquire a 17.5% stake in the PT Teluk Metal Industry HPAL project (TMI). The TMI project is located within the Indonesia Morowali Industrial Park (IMIP) and is being developed as an expansion of the ENC project at the same site, producing mixed hydroxide precipitate (MHP) for the EV battery supply chain. Nickel Industries holds a 17.5% stake in the project, a Korean-Japanese consortium (comprising LS MnM, Hanwa, and an undisclosed strategic investor) holds a 72.5% stake, and another Singapore-based investment company, Sumber International Investment, holds a 10% stake. TMI is currently under construction and is expected to commence production in mid-2027. TMI has an annual nominal capacity of 38,640 mt Ni, providing Nickel Industries with attributable production of approximately 6,775 mt Ni per year (in the form of MHP).