【SMM Indonesia's Local Laterite Nickel Ore Daily Review】

The tariff policy implemented by Trump had a significant impact on the market, and nickel prices plummeted, currently still fluctuating.
Affected by this, the price of Indonesia's local ore in April may change. Before the Ramadan holiday, the mainstream premium for Indonesia's local ore in April had already reached $24-25/wmt, but SMM expects that the premium in the latter part of April may decrease.
First, the Indonesian nickel ore market had strong expectations before the holiday regarding the increase in nickel ore royalties under the PNBP policy. The significant increase in the April premium was also influenced by the expected rise in nickel ore sales costs after the policy's implementation. However, after the end of Ramadan, the relevant policies have not yet been implemented. According to SMM, due to the impact of the US tariff policy, the announcement of Indonesia's PNBP-related policies has been delayed, and relevant Indonesian government departments may re-evaluate the policy. Second, the US tariff policy caused a comprehensive decline in the prices of nickel-related products, stripping away the "fig leaf" of nickel. The decline in downstream product prices may be transmitted to the nickel ore sector, significantly weakening the support for nickel ore prices. Third, the first HPM price in April still follows the original pricing logic, with the first HMA in April remaining at $16,126.33/mt, which contradicts the current price downturn and may further pressure the premium for subsequent transactions in April.
According to SMM, today is the last day of the Indonesian Lebaran holiday. Nickel mines and downstream companies have already planned to renegotiate the April premium starting tomorrow. SMM will continue to follow up on subsequent transaction situations to provide the market with first-hand information.