Indonesia's new policies reshaping industry cost chain, institutions say nickel prices still have room to rise.

Entering the middle of April, the domestic and international nickel futures markets saw a strong breakthrough, with both Shanghai nickel futures and London nickel futures hitting new highs since the end of January, ending the previous period of consolidation and adjustment. The core spark of this round of market boom is the revision of the nickel ore benchmark price calculation formula officially implemented by the Indonesian government, which has directly changed the pricing system of the global nickel market. Industry insiders have stated that the adjustment of the new Indonesian HPM policy this time far exceeded market expectations, not only for the first time including cobalt, iron, and other associated elements in pricing, but also significantly increasing the nickel ore correction factor, doubling the ore price differential, leading to a significant rise in the cost of the industry chain. Wet smelting is more affected than pyrometallurgy, and under the strengthening of cost support and multiple disruptions in supply, nickel prices are expected to maintain a strong running trend in 2026.