Indonesia's new policies reshape industry chain costs, institutions say nickel prices still have room to rise

The core trigger that ignited this round of market movements was the official implementation of Indonesia's revised nickel ore benchmark price calculation rules, with changes in the pricing logic directly overhauling the global nickel market pricing system. Industry insiders indicate that the latest adjustments to Indonesia's HPM policy far exceeded market expectations, incorporating for the first time pricing for by-products such as cobalt and iron, and significantly increasing the nickel ore adjustment coefficient, resulting in a doubling of price differences and causing a notable rise in industry chain costs. Among the processing methods, hydrometallurgy is impacted much more severely than pyrometallurgy. Backed by stronger cost support and multiple supply disruptions occurring in tandem, overall nickel prices are expected to maintain a strong and volatile trend through 2026.