Nickel hydrometallurgy intermediate products in Indonesia saw a production decline due to weather impact, down 12.06% MoM in June [SMM Analysis]

In July 2024, Indonesia's nickel hydrometallurgy intermediate products output was 22,600 mt in metal content, down 12.06% MoM, up 79.37% YoY, with a cumulative YoY increase of 104.78%. This month's output remained at a relatively high level in recent years. By island, Sulawesi's output was 9,300 mt in metal content, slightly up 4.49% MoM, up 22.37% YoY; the total output from other islands was 15,500 mt in metal content, down 20.83% MoM, up 166% YoY. The significant reduction in this month's output was mainly due to the impact of abnormal weather in Indonesia, which forced a decrease in the transportation efficiency of ore and auxiliary materials within some areas, leading to untimely raw material supply and consequently passive reduction in scheduled production.

In August 2024, due to the improvement in weather conditions compared to July, it is expected that raw material transportation may resume but still impact production. Therefore, the expected production of nickel hydrometallurgy intermediate products in Indonesia in August is 24,800 mt in metal content, up 9.73% MoM from July, but not yet back to normal levels. It represents a YoY increase of 63.16% and a cumulative YoY increase of 104.78%.