Prices of High-grade NPI Decline on Falling Nickel Ore Prices

Indonesia's nickel ore production reached 173.79 million mt as of September 1, 2026, according to data from the Energy and Mineral Resources Ministry (ESDM). Full-year nickel ore production stood at 320.37 million mt in 2025. Meanwhile, nickel-related non-tax revenue (PNBP) reached Rp21 trillion through August 31, more than double the Rp10 trillion recorded during the same period last year. ESDM said the government's focus is shifting toward optimising production in line with market demand, prices, logistics and reserve sustainability. The production data provides an indication of actual physical ore supply as Indonesia gradually releases additional 2026 mining quotas. With downstream nickel-processing capacity requiring substantially more ore, market attention remains focused on whether production and shipments can keep pace with smelter demand.

On September 29, Indonesia's nickel ore market remained stable, with prices for major grades unchanged: 1.2% Ni: $26.5/wmt, unchanged 1.3% Ni: $28.5/wmt, unchanged 1.4% Ni: $51.8/wmt, unchanged 1.5% Ni: $58.5/wmt, unchanged 1.6% Ni: $63.4/wmt, unchanged Market sources said additional 2026 RKAB quotas are gradually being approved and released, although the total additional quota has yet to be officially announced. Market attention is increasingly shifting from quota approvals to actual mine production and nickel ore shipments.

PT Sulawesi Cahaya Mineral (SCM) inaugurated a 60-km Main Hauling Road (MHR) on September 16, connecting its nickel mining area and stockpile in Konawe, Southeast Sulawesi, with nickel processing facilities in Morowali, Central Sulawesi. The dedicated route is designed for heavy vehicles and trucks transporting nickel ore and other mining materials, allowing SCM to conduct hauling operations through its own road network rather than relying on public roads. According to SCM's Head of Mining Engineering, ore will be transported from the company's Konawe mining operations to Morowali on a daily basis. The MHR was constructed in two stages. The first 20-km section was completed between 2021 and 2023, while construction of the remaining section began in late 2023 and was completed in September 2026. SCM said the completed route is expected to improve control, safety, efficiency and reliability in ore transportation between its mining and processing operations.