Indonesia's nickel production cuts will lead to higher nickel prices

The Association of Indonesian Nickel Mining (APNI) has spoken out against the government's plan to cut nickel ore production by evaluating the 2025 work program and cost budget (RKAB).APNI Secretary General says production cuts would increase global nickel prices. Macquarie Group's global nickel analysts analyze that if Indonesia cuts nickel ore production to 150 million tons, the global nickel price will rise to $20,000 per ton from the current $15,000-$16,000 per ton. 2024 Indonesian nickel ore production reaches 2,984.9 million tons; production in 2023 is nearly 200 million tons, and the actual is 175,617.183 million tons, and 2023-2024 Indonesian nickel production accounts for 65% of the global nickel market. The global nickel market is "flooded" with nickel products in 2023-2024, mainly due to an increase in the production of refined nickel, such as mixed hydroxide precipitates (MHP) and nickel matte, which accounted for 301 TP3T. As of 2023, Indonesia's total nickel ore resources amounted to 18,550,358,128 million tons, and metallic nickel amounted to 184,606,018 million tons. Nickel metal amounted to 184,606,736 million tons; nickel ore reserves amounted to 5,325,790,841 million tons, and nickel metal reserves amounted to 56,117,870,000 tons