The Indonesian Nickel Mines Association (APNI) pointed out that there was a significant oversupply of nickel in Indonesia in the first half of 2025. This situation is intensifying the downward pressure on global nickel prices and triggering negative market sentiment.
APNI Secretary-General Meidy Katrin Lengkey, in a recent Jakarta report systematically assessing January-May 2025 production performance and forecasting national plans for H2 2025 and 2026, stated current oversupply has persisted since 2023 with Indonesia's surplus estimated at 500,000 tonnes. She emphasized this supply-demand imbalance continues to pressure nickel prices globally. The assessment shows severe oversupply of nickel pig iron (NPI), ferronickel, and nickel sulfate products in Indonesia during the first five months of 2025, directly impacting international market prices.
For 2026 national production planning, APNI is urging the Energy Ministry and Mineral and Coal Directorate General to revise the Mineral Benchmark Price (HPM) formula and reference price indices.
While China remains the primary export market, Indonesia is expanding into new markets including Japan, South Korea, and Europe, exporting nickel matte, MHP, nickel sulfate, and refined nickel. APNI asserts that strengthening downstream industrial chains and comprehensively evaluating export policies are essential for maintaining the competitiveness and sustainability of Indonesia's nickel industry amid global pressures.
Written by Cora Ji, jiruyan@mysteel.com
