[SMM Nickel Flash News] Indonesia Reviews PP 19/2025 Amendment, Nickel-Related Royalties May Rise

Spain's Acerinox said on its Q2 2026 earnings call that while the US stainless market remains solid, softer nickel prices are expected to drag on transaction prices through the alloy surcharge mechanism. Executives contrasted the two regions: the US surcharge system buffers raw material swings with a lag, whereas European prices adjust more directly to raw material costs in a highly competitive market. Newly implemented EU trade measures should stabilise the European market by curbing imports and lifting local output, but the company said meaningful price increases still depend on broader conditions. The comments underline that mill realisations in the two regions respond to the same nickel move on different timelines.

Spain's Acerinox told its Q2 2026 earnings call it will cut working capital in the second half after a build in net working capital, driven mainly by higher inventory and tax payments, pushed net financial debt to €1.3 billion, or 2.5 times EBITDA, and left free cash flow at minus €65 million for the quarter. Both debt and cash flow came in worse than consensus. Management said it expects working capital to fall in Q3 depending on raw material prices, particularly nickel, with a focus on controlling inventory tonnage and days. Cumulative synergies reached €16 million in the quarter, about 70% of the full-year target. A producer-level destocking cycle at a major Western mill is a demand signal worth tracking for 300-series raw materials.

The US International Trade Commission (ITC) has initiated anti-dumping (AD) and countervailing duty (CVD) investigations on welded stainless steel line and pressure pipe from India, Turkey, and the United Arab Emirates, following petitions filed on July 15, 2026, by Bristol Pipe and Tube, Felker Brothers Corporation, and Primus Pipe and Tube. The petitioners allege imports are being sold at less than normal value, with India and Turkey also alleged to benefit from countervailable subsidies. The scope covers AD and CVD investigations on imports from India and Turkey, and an AD-only investigation on UAE imports. The ITC is conducting its preliminary phase to determine whether there is a reasonable indication of material injury or threat thereof to the US industry. The US Department of Commerce is expected to initiate its own investigations on or around August 4, 2026.