24 February 2025 – One of Indonesia’s largest nickel smelters with an annual capacity of 1.8 million tonnes of nickel pig iron is on the verge of closure. NPI and stainless steel scrap prices continue to rise. Positive environment for aluminium prices. US administration limits foreign access to US companies.
Major Indonesian nickel smelter about to close
One of Indonesia’s largest nickel smelters with an annual capacity of 1.8 million tonnes of nickel pig iron is on the verge of closure. With a few exceptions, almost all of the 20 production lines have already been shut down, as various media reported today.
Nickel smelter production on the brink of a final halt
PT Gunbuster Nickel Industry, which belongs to the bankrupt Chinese stainless steel giant Jiangsu Delong Nickel Industry Co., is no longer able to procure nickel ore and has suspended payments to local energy suppliers, according to media reports. If the situation continues, the smelter is likely to cease production completely soon.
Nickel Pig Iron prices continue to rise
Nickel pig iron FOB Indonesia prices continued to improve today, Monday, and rose by approx. 1.6%. Chinese stainless steel scrap prices (grade 304) were also up 1.6% today.
Aluminium prices point upwards
Aluminium prices rose to just under USD 2,715 per tonne on the London Metal Exchange (LME) last week – the highest level in nine months. This is due to supply restrictions and an expected recovery in demand.
China produced a record 44 million tonnes in 2024
China produced a record 44 million tonnes in 2024. However, as the government has limited production to 45 million tonnes since 2017 to reduce emissions, China’s supply can hardly be expanded any further. At the same time, however, China is stimulating the economy and making efforts to stabilise the real estate sector.
Positive environment for aluminium prices
In the US, the ISM sentiment indicator showed an unexpected recovery in the manufacturing sector in January – the first expansion in over two years. Together with new US tariffs against China, EU sanctions against Russian raw aluminium and rising demand, this should continue to have a positive impact on aluminium prices.
US administration limits foreign access to US companies
US President Trump announced the America First Investment Policy in a presidential action on Friday. The primary aim of this decree is to limit the Chinese government’s access to strategic companies, their technologies and innovations in the United States.
At the same time, ‘fast-track’ procedures are intended to significantly simplify foreign investment by certain allies and partners. In conjunction with this, more resources are also to be made available by the government to facilitate investment from key partner countries.
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Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.
