[SMM Analysis] Progress of Indonesian laterite nickel ore RKAB approval

According to SMM, Indonesian laterite nickel ore RKAB approval quotas in January-May totalled 217.6 million wmt, with 92 applications approved. Compared to 152.169 million wmt announced at the end of March, this represented a MoM increase of 42.99%. The number of approved applications accounted for approximately 26.21% of the total. It is important to note that this year's approvals represent quotas in three years. This means that the total approved quotas in January-May will not be fully digested by the Indonesian market demand within 2024. Therefore, the current Indonesian nickel ore approval quotas are still relatively limited, and the overall supply tightness has not been fully alleviated. However, in the short term, the news may impact market prices from a sentiment perspective. With the gradual supply increase, the premium of Indonesian laterite nickel ores is expected to have some downward room in June.