Nickel Prices Surge to Two-Month High Due to Indonesia!
Jakarta is once again influencing the global metals market. Nickel prices have surged to their highest level in more than two months following Indonesia’s new policies and supply pressures that are driving up global production costs.
According to Trading Economics, in trading on 15 April 2026, nickel stood at US$18,323.88 per tonne, up 0.63% from the previous day. Over the past month, prices have soared 4.8%, while year-on-year they have jumped 17.5%.
This rise comes as the market interprets an important signal: Indonesia is tightening governance of nickel raw materials. The government has revised the formula for the Mineral Reference Price (HPM) of nickel ore. In the new scheme, the valuation components now include other elements such as iron, cobalt, and chromium. The correction factors for determining the minimum price have also been increased.
The base price of nickel ore has risen, pushing up miners’ costs, which then spills over to smelters that have previously enjoyed cheap raw materials. As upstream costs increase, the global production cost curve is lifted. For the commodities market, this means the world reference price has more room to sustain high levels.
Indonesia is the world’s largest nickel producer and a hub for refinery industry expansion in recent years. When Jakarta changes pricing rules, market players from Shanghai to London recalculate their business margins.
Further pressure comes from Indonesia’s HPAL sector, a processing technology widely used to produce raw materials for electric vehicle batteries. Sulphur prices have surged above US$800 per tonne. The rise in chemical input costs is squeezing factory profitability, leading some producers to cut intermediate nickel product output. Short-term supply is thus tightening.
Amid a fragile supply side, demand remains unabated. The battery industry continues to absorb nickel materials, while stainless steel sector consumption remains solid. This combination leaves the market without breathing room. Available goods are not loose, while buyers keep coming.