In November 2024, the production of Indonesian NPI continued to rise by 1.07% MoM and 4.2% YoY. The cumulative production for 2024 was up 7.0% YoY. On the supply side, the Indonesian domestic trade laterite nickel ore market continued to show a marginally easing trend in November, with the premiums steadily declining. Along with the decline in Indonesian domestic trade laterite nickel ore prices and the easing supply side, the supplementary supply of Philippine laterite nickel ore to the Indonesian nickel market also significantly decreased during the month. On the demand side, some RKEF production lines, which were initially expected to complete new commissioning within the year, did not proceed as scheduled, and the overall commissioning pace of new projects in the market is still slowing down. However, the overall production still saw a slight increase due to changes in costs and other factors. Additionally, influenced by the overall downward fluctuation of LME nickel prices, the drive for switching to high-grade nickel matte production in Indonesia continued to weaken. Coupled with the further highlighted cost advantages of Indonesian NPI smelting compared to domestic production, there remains some upside room for Indonesian NPI production.
It is expected that in December, Indonesian NPI production will rise by 1.05% MoM and 4.2% YoY, with cumulative production up 6.7% YoY.
