The 2026 El Niño event continues to intensify, with international climate monitoring indicating that this could be one of the strongest El Niño events on record. Indonesia is already experiencing significant heat and dry conditions, with El Niño expected to peak in September.
According to SMM, the current water shortage at IMIP is mainly affecting carbon steel production, while nickel production has not yet been impacted. However, if the dry weather and water shortages persist, further pressure on industrial water supplies could increase the risk of nickel production cuts.
