[SMM Nickel News Flash] Indonesia Released HPM, SMM Estimated MHP Production Cost Expected to Rise by About $2,600/mt Ni

Published: Apr 13, 2026 19:01

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According to SMM's calculations, taking 1.2% grade nickel ore as an example, based on the benchmark price as of April 1, the new nickel ore HPM was expected to be raised to $40.18/wmt, while the original nickel ore HPM was $16/wmt. Currently, SMM's latest Indonesia's local laterite nickel ore 1.2% (delivered-to-port price) averaged $30.5/wmt, lower than the new HPM. Assuming the HPM benchmark price serves as the minimum price for mines, after factoring in freight costs, the selling price of 1.2% grade HPAL ore for external sale after April 15 would be $48.18/wmt. Based on this calculation, the cost of producing MHP from externally purchased HPAL ore would rise approximately $2,600/mt Ni.

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