Indonesian smelters cut production on lower nickel ore quota
Geopolitics · Mining.com ·
Indonesian industry group FINI says capacity utilization at RKEF nickel smelters has fallen to 76% from 84% after the government cut the 2026 nickel ore mining quota to 260-270 million tonnes, well below last year's 320 million tonnes. Officials defended the cut as necessary to prevent what could be the largest surplus in the nickel market's history, with one adviser calling $18,000-$20,000 per tonne the 'sweet spot' for prices. LME nickel had surged to $20,000 a tonne in early May on supply concerns from the world's top producer.