Indonesian MHP Nickel and Cobalt FOB Prices Decline, High-Grade Nickel Matte Also Down

According to SMM data, on September 18, the average price of SMM battery-grade nickel sulphate fell by 20 yuan/mt from the previous day.

Downstream maintained cautious purchasing, and the intermediate product payables were in the doldrums this week.

Indonesian nickel ore CIF average prices remained at the latest levels following recent declines: · 1.2% Ni: CIF average price at $27/wmt, unchanged · 1.4% Ni: CIF average price at $51.8/wmt, unchanged · 1.5% Ni: CIF average price at $58.5/wmt, unchanged · 1.6% Ni: CIF average price at $63.4/wmt, unchanged The Indonesian nickel ore market has started to adjust following the gradual release of additional RKAB approvals. Although the government has not yet disclosed the total additional quota, some approvals have already been gradually released to the market, bringing additional supply expectations. Nickel ore prices have declined accordingly, and the market is now monitoring how further RKAB releases will affect pricing and transaction activity. ESDM is currently reviewing around 50 revised RKAB applications, while Vale Indonesia has also requested additional production quota after receiving its initial 2026 RKAB approval. Meanwhile, the revised nickel ore HPM formula took effect on September 15, lowering the corrective factor for 1.2% Ni ore from 26% to 14% and the cobalt coefficient from 30% to 17%. The revision has lowered the HPM benchmark for low-grade limonite and reduced the associated tax and royalty burden. The market is now assessing how the lower HPM and additional RKAB supply will translate into actual transaction prices and market volumes.