Indonesia's nickel product output to fall 4% this year, smelter group forecasts

By Reuters News

JAKARTA, Oct 14 (Reuters) - Indonesia's output of nickel products in 2026 is expected to drop by up to 4% on the year due to tight supplies of some raw materials, a shift to other metals and the impact of drought on production, the nickel smelter association FINI said on Wednesday.

  • FINI said it expected production to drop between 3.5% and 4% compared to 2025, when 2.5 million metric tons of nickel content were produced, chairperson Arif Perdana Kusuma told Reuters.

  • By August, Indonesia's nickel metal output through the pyrometallurgical process, such as nickel pig iron (NPI), had reached 1.3 million tons, while output through the hydrometallurgical process reached around 270,000 tons, he said.

  • Indonesia's overall nickel product output this year is expected to be lower due to falling NPI production, with smelters switching production to nickel matte. Tight sulphur and sulphuric acid supplies will also contribute to the fall in production, as well as higher nickel ore prices.

  • Some smelters in the second half of 2026 are turning off their nickel furnaces to divert power supply to aluminium production, Arif added.

  • El Niño-driven drought is also causing water supply issues, which affect production activities.

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