[SMM Nickel Flash] Eramet Says EU Carbon Costs Shut Market for Indonesian NPI

Published: Sep 30, 2026 02:23 (GMT+8)

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French mining group Eramet said Indonesian nickel pig iron (NPI) has effectively lost access to the European market due to its high carbon footprint and the rising cost of carbon in Europe. Indonesia’s NPI industry relies heavily on coal-fired power, resulting in relatively high embedded emissions, while tightening European carbon requirements are increasing the cost disadvantage for carbon-intensive materials. With the EU’s Carbon Border Adjustment Mechanism (CBAM) entering its definitive phase in 2026, carbon intensity is becoming an increasingly important factor in the competitiveness of nickel-containing products and stainless-steel raw materials. Eramet, which has an interest in Indonesia’s Weda Bay Nickel operation, indicated that the widening carbon-cost gap could increasingly shape the destination of Indonesian NPI, reinforcing its concentration in Asian stainless-steel markets.

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