Indonesia signals further cuts to nickel ore quotas in 2027
2026-11-04 11:41:13 [Print]
On November 2, Bahlil Lahadalia, Indonesia's Minister for Coordination of Downstream Industries and Energy Transition and Minister of Energy and Mineral Resources, stated at a mining conference that, affected by the global nickel supply glut and the continuous weakening of nickel prices, Indonesia will use the Annual Production Plan (RKAB) mechanism to signal a further reduction in the nickel ore production quota for 2027.
The minister explained that global annual nickel demand is approximately 3.5 million tons, but current supply is already in surplus. The surplus is around 750,000 tons, as reflected in inventories at the LME and the Shanghai Futures Exchange. The nickel price has currently fallen below US$16,000 per ton, to around US$15,800 per ton, which is about 5% lower than Indonesia's official benchmark ore price, putting pressure on mining operations. He also warned that in a low-price environment, other countries may stockpile Indonesia's intermediate products and sell them after prices rebound.
Tri Winarno, Head of Indonesia's General Directorate of Minerals and Coal, also stated on October 29 that when formulating the 2027 nickel ore RKAB quota, the global supply and demand situation and the raw material demand of domestic smelters will be comprehensively considered. Indonesia's revised nickel ore quota range for 2026 is 290 million to 300 million tons, and the 2027 quota is expected to be lower than this level. The official has not yet announced the specific reduction amount.
The minister explained that global annual nickel demand is approximately 3.5 million tons, but current supply is already in surplus. The surplus is around 750,000 tons, as reflected in inventories at the LME and the Shanghai Futures Exchange. The nickel price has currently fallen below US$16,000 per ton, to around US$15,800 per ton, which is about 5% lower than Indonesia's official benchmark ore price, putting pressure on mining operations. He also warned that in a low-price environment, other countries may stockpile Indonesia's intermediate products and sell them after prices rebound.
Tri Winarno, Head of Indonesia's General Directorate of Minerals and Coal, also stated on October 29 that when formulating the 2027 nickel ore RKAB quota, the global supply and demand situation and the raw material demand of domestic smelters will be comprehensively considered. Indonesia's revised nickel ore quota range for 2026 is 290 million to 300 million tons, and the 2027 quota is expected to be lower than this level. The official has not yet announced the specific reduction amount.
Nickel Ore Philippine 1.3%min CIF China
Unit:USD/mt
China nickel sulfate producers' sales volume statistics by province by month
Unit: mt
