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Indonesia, a key nickel producer, faces potential production cuts due to shipping disruptions in the Gulf, impacting its sulfur imports, which constitute 75% of total imports. Nickel prices have increased over 30% recently, driven by heightened demand and production delays.

PT Vale Indonesia is revising its 2026 production quotas while the country is enhancing its nickel processing capabilities to cater to EV battery requirements. The government's cuts to coal and nickel production quotas to stabilize prices have incited complaints from miners and power plant operators concerned about potential shortages.