Vale Claims Sulphur Stockpiles Are Secure Amid Global Supply Disruptions
PT Vale Indonesia Tbk has ensured the availability of raw material sulphur for producing sulphuric acid needed for smelter operations remains secure, particularly amid industry concerns over a potential sulphur crisis due to global supply chain disruptions.
The company’s Chief Financial Officer, Rizky Andhika Putra, stated that they have prepared adequate inventory buffers to sustain operations this year.
“The inventory is sufficiently secure for this year’s operations, so intake can be managed well. Hopefully, prices will stabilise; from the news, it seems the conflict is showing more positive signals,” he said when met in Jakarta, quoted on Friday (24/4/2026).
Although supplies remain secure, Vale is still taking anticipatory measures. He emphasised that the company is actively securing procurement, both in terms of supply sources and suppliers.
“Certainly, we are actively handling procurement from both the resource side and the category side; we continue to seek mitigation. Additionally, operational efficiency is key—not just focusing on supplier sources but also efficiency in such times. Anticipation is our main focus,” he added.
As is known, disruptions in sulphur supplies from the Middle East region are prompting nickel industry players in Indonesia to seek alternative sources. However, efforts to shift imports are deemed not easy and full of challenges.
Chairman of the Indonesian Nickel Industry Forum (FINI), Arif Perdana Kusumah, revealed that several business players are currently exploring sulphur supplies from countries outside the Middle East as a precautionary step.
“Due to the supply disruptions and shortages that have occurred, some business players are starting to pursue other sources from countries outside the Middle East,” he told CNBC Indonesia on Thursday (23/4/2026).
Nevertheless, he assessed that this step cannot immediately replace the main supply. This is because alternative countries have more limited production capacities.
“This is not easy, because the distances could be farther and the quantities not as abundant as those produced by Middle Eastern oil and natural gas producing countries. Besides that, the global sulphur price has currently experienced a very significant increase,” he said.
Therefore, some companies are also beginning to consider importing in the form of sulphuric acid as a substitute for sulphur. However, this option also faces obstacles, from logistical complexities and special handling requirements to import permitting processes that are still considered quite complicated.
“Government policies are needed to facilitate the granting of import permits for sulphuric acid during emergency conditions like this,” he stated.