One Shandong Nickel Producer Cuts Output in July on Raw Material Issues, SMM Learns

Indonesian nickel ore CIF average prices remained unchanged across all three grades: · 1.4% Ni: CIF average price at $53.3/wmt · 1.5% Ni: CIF average price at $60.8/wmt · 1.6% Ni: CIF average price at $65.8/wmt The Indonesian nickel ore market remains in a wait-and-see period, with the market monitoring further RKAB approvals and potential quota adjustments.The government has confirmed that no nickel export duty or windfall tax will be imposed in 2026, while policy discussions for 2027 remain ongoing. Meanwhile, water shortages in Luwu, South Sulawesi, are affecting certain industrial operations, with limited water and power availability causing some nickel-related facilities to reduce operating rates, posing a localized supply risk.Weather across major nickel-producing regions remains generally manageable, although localized heavy rainfall may still temporarily disrupt mining and logistics. The market is also awaiting a potential HPM formula revision for limonite ore, which could affect limonite pricing and HPAL feedstock economics.

On August 26, the average price of SMM battery-grade nickel sulphate slightly decreased.

Prolonged dry weather has tightened water availability in Luwu, South Sulawesi, limiting water and power supply to certain industrial facilities. As a result, some nickel and metallurgical operations have reduced operating rates, affecting production. For the nickel industry, continued water shortages could further constrain smelter utilisation and impact nickel output in the Luwu area. The impact remains localized for now, but further deterioration in water availability could lead to additional production disruptions.