传青山、格林美、力勤、华友拟开会协商印尼HPAL镍冶炼减产，8月曾谈崩、市场不买账

Executives from Chinese nickel producers plan to meet as early as October 20 to seek coordinated production cuts at Indonesian processing plants as weaker prices and rising costs pressure margins. The talks could affect global nickel and battery supply chains, but their timing and outcome remain uncertain amid ongoing policy challenges in Indonesia.

A second push for cuts
Tsingshan Holding Group, GEM, Lygend Resources, and Huayou Cobalt are expected to discuss the scale of possible cuts at high-pressure acid leaching (HPAL) plants, Bloomberg said. The companies considered a similar plan in August but did not reach an agreement.
London Metal Exchange data shows nickel prices have fallen about 20% from their May peak. Lower prices, higher costs for Indonesian nickel ore, and rising sulfur prices have further reduced margins for HPAL operations.
HPAL plants produce mixed hydroxide precipitate (MHP), which contains nickel and cobalt and is an important raw material for battery manufacturing.
A Chinese-led industry
Indonesia banned nickel ore exports in 2020 as part of efforts to develop its electric-vehicle industry. The policy encouraged companies to establish processing facilities in the country, helping expand the local supply chain and increase value-added output. Chinese companies have been the most active participants and now dominate Indonesia's nickel-processing industry.
Chinese state media reported that Indonesian President Prabowo Subianto presided over a ceremony in North Maluku province in early October 2026 to launch 11 downstream projects backed by Chinese capital. The projects represent about US$10.2 billion in investment and span power batteries and nickel-cobalt materials. Tsingshan is the industrial park's lead developer.
A costly balancing act
However, producers face higher costs and other operational challenges. Indonesia has imposed mining quotas to support nickel ore prices and increase government revenue, raising costs for processors. Sulfur prices have also risen since conflicts erupted in the Middle East, while water shortages in Indonesia have added pressure.
Indonesia accounts for about 60% of global nickel production. Reuters reported that managing prices through mining quotas has proved difficult. As local mining output has declined, some processors have begun importing ore from the Philippines, leaving the Indonesian government to balance supply, prices, and processing activity.