[SMM Stainless Steel Flash] Supply Worries Drive LME Nickel Prices to One-Month High

At the 2026 SMM Indonesia Mining & Critical Metals Conference, SMM VP Shirley Wang said the DRC has historically been the dominant centre of global cobalt supply, but Indonesia's share has risen notably following policy shifts last year. Over the next decade, cobalt contained in Indonesian MHP is expected to account for a growing proportion of global supply, with the market transitioning from a DRC-centric structure to a dual-centre model anchored by both the DRC and Indonesia.

The World Stainless Association announced that, global stainless steel production rose 2.5% YoY to 15.8 million tons in Q1 2026. Asia produced 13.4 million tons from January to April, up 3.3% YoY, with China contributing 9.84 million tons (+4.3% YoY). The EU saw output decline 4.6% YoY to 1.5 million tons, while the US produced 600,000 tons (+2.3% YoY).

At the 2026 SMM Indonesia Critical Minerals Conference & Expo, SMM Vice President Shirley Wang outlined the structural shift in global nickel production costs: prior to 2015, high-grade primary nickel ore dominated as the lowest-cost feedstock; from 2016 to 2026, low-grade ore and laterite mining steadily gained share; today, laterite nickel ore has become the most cost-competitive feedstock. Looking ahead, Shirley Wang cautioned that as laterite ore grades continue to decline, nickel production from sulphide ore — historically more expensive but grade-stable — may see a structural revival.