Indonesia's Nickel Producers Face Supply Risks from Gulf Shipping Disruptions
Indonesia, supplying 60% of global nickel, risks production cuts due to Gulf shipping disruptions affecting sulfur imports. Nickel prices have risen over 30% amid increased demand. PT Vale Indonesia plans to revise its 2026 production quotas while enhancing processing capabilities for EV batteries, despite competition from LFP batteries. The government's cuts to coal and nickel production quotas to support prices have led to complaints from miners and power plant operators concerned about shortages.
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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.
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