In the second half of July 2025, Indonesia's nickel ore benchmark price (HPM) continued its downward trend. According to the Indonesian Nickel Miners Association (APNI), the HPM for 1.8%-grade nickel ore (30% moisture) stood at $35.73/wmt, slightly down from $35.77/wmt in the previous period. Prices across major nickel grades declined uniformly, with 1.8%-grade ore (35% moisture) dropping from $33.22/wmt to $33.18/wmt.
This decline highlights concerns that the current HPM pricing formula fails to reflect market supply-demand dynamics. APNI asserts that the existing model overlooks critical economic elements, such as the value of iron in saprolite ore and cobalt in limonite--unmonetized components that could increase HPM by over 100% if incorporated.
APNI has called on Indonesia's Ministry of Energy and Mineral Resources (ESDM) to urgently establish a joint task force to revise the HPM formula, ensuring it accurately captures current production costs and market value. Key proposals include evaluating the applicability of the nickel-iron HPM correction factor (CF) and aligning trade units with global standards by shifting from USD/dmt to nickel-content-based pricing (USD per tonne of pure nickel or USD per nickel unit).
Written by Cora Ji, jiruyan@mysteel.com
