According to a quarterly report released by Merdeka Battery Materials (MBMA), the company produced 19,990 tonnes of nickel pig iron (NPI) in the first quarter of 2026, down 4.85% quarter-on-quarter but up 22.66% year-on-year. High-grade nickel matte production at the HGNM project reached 10,361 tonnes, down 1.07% quarter-on-quarter but up 8.78% year-on-year.
The year-on-year increase in NPI production in Q1 2026 was primarily driven by the completion of full overhauls on two furnaces at BSI during fiscal year 2025. The sequential decline reflected a temporary drop in processing efficiency due to changes in ore blending. Management is continuously optimizing furnace performance and ore management practices, and expects a gradual recovery in production over the coming quarters.
Meanwhile, production of high-grade nickel matte at the HGNM project continues, supported by its attractive economics. The project's average selling price rose 14% year-on-year to 15,349/tonne. Despite a 6% year-on-year increase in cash costs to $14,029/tonne, the profit margin still achieved a significant year-on-year growth of 445%.
MBMA expects its full-year 2026 NPI production guidance to be between 70,000 and 80,000 tonnes. In fiscal year 2026, the RKEF lines are expected to be fully supplied with ore from SCM's own mines. High-grade nickel matte production is forecast at 44,000-48,000 tonnes. The production cost of high-grade nickel matte is largely driven by the selling price of NPI from MBMA's RKEF smelters. MBMA will continue to capitalize on the high profitability of producing nickel matte.
Written by Cora Ji, jiruyan@mysteel.com
