Sources: Glencore Sells Indonesian Nickel Ore

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 04 Nov , 2026

Indonesia's National Economic Council (DEN) has expressed support for the Ministry of Energy and Mineral Resources (ESDM) to reduce nickel production through the Work Plan and Budget (RKAB) mechanism to address global oversupply and support prices. DEN member Septian Hario Seto said on November 3 at the 2026 Minerba Convex event that Indonesia's rising nickel production had contributed to global oversupply and weighed on prices. He noted that nickel prices rose nearly 20% following ESDM's announcement of an initial reduction in the nickel ore RKAB quota to 270 million wmt. Energy and Mineral Resources Minister Bahlil Lahadalia said Indonesia plans to adopt a supply-management approach similar to that used in the coal industry. He added that global nickel demand stands at approximately 3.5 million mt annually, while oversupply is estimated at nearly 800,000 mt, with nickel prices around US$15,800/mt. DEN's support signals broader policy backing for tighter nickel production controls. With Indonesia's revised 2026 RKAB quota at approximately 295–300 million wmt, the 2027 allocation could face further cuts. However, the impact on ore prices will depend on the scale of quota reductions relative to domestic smelter demand and actual consumption.

Indonesia's Ministry of Energy and Mineral Resources (ESDM) indicated that nickel ore production quota cuts under the 2027 Work Plan and Budget (RKAB) may be more aggressive than those implemented in 2026. Cecep Mochammad Yasin, Director of Mineral Business Development at ESDM's Directorate General of Mineral and Coal, said the 2027 nickel ore quota would take into account the optimal operating capacity of domestic nickel smelters, rather than being determined solely by their raw material requirements. Cecep noted that the global nickel market was facing a surplus of approximately 800,000 mt, alongside elevated inventories on the London Metal Exchange (LME) and Shanghai Futures Exchange (SHFE). Meanwhile, major producers, including Huayou and Tsingshan, are reportedly considering production capacity cuts of up to 50% amid persistent oversupply and inventory pressure. According to SMM, Indonesia's revised 2026 nickel ore RKAB quota stands at approximately 295–300 million wmt. ESDM has yet to announce the specific allocation for 2027, but has signalled the possibility of further tightening.