MYSTEEL: How will Jakarta's new nickel ore policy reshape global stainless?

Source: Mysteel Apr 17, 2026 10:50

Indonesia implemented a new Mineral Benchmark Price (Harga Patokan Mineral, or HPM) pricing formula for nickel ore on April 15. The policy, part of Jakarta's long-term strategy to control nickel supply, raise prices, and boost state revenue from the mineral sector, is set to fundamentally reshape the global stainless steel industry, Mysteel Global notes. The change will drive up production costs, accelerate capacity concentration in Southeast Asia, and force structural adjustments in China's stainless steel sector.

Policy background Under Ministerial Decree No. 144.K/MB.01/MEM.B/2026, Indonesia's Ministry of Energy and Mineral Resources (ESDM) has raised the correction factor (CF) for 1.6% grade nickel ore from 17% to 30%. For every 0.1% increase or decrease in nickel grade, the CF will decrease or increase by 1%, respectively, as Mysteel