SMM Nickel News: High-Grade NPI Sentiment Index Falls in May

China's stainless steel futures gave back ground sharply in the first trading week after the May Day holiday, as a sudden easing of Middle East tensions deflated the risk premium that had carried prices to recent highs. With the cost-side narrative unwinding and physical demand showing little follow-through, the market is searching for a new floor

On May 8, Indonesia’s Directorate General of Mineral and Coal under ESDM held a public consultation on the proposed PP 19/2025 amendment, covering royalty adjustments for several minerals. For nickel ore, the proposal lowers the lowest HMA threshold from below $18,000/mt to below $16,000/mt, and the top threshold from $31,000/mt and above to $26,000/mt and above. The structure would expand from five to six brackets, with rates ranging from 14% to 19%. Based on today’s nickel HMA of $17,802/mt, the applicable nickel ore royalty would rise from 14% to 15% if implemented. The proposal also adds a 2% royalty on cobalt in nickel matte and non-nickel smelting products, and a 2.5% royalty for Alloy Pig Iron. Whether this affects mainstream NPI depends on Indonesia’s final product classification.