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| ESDM |
The Indonesian Ministry of Energy and Mineral Resources (ESDM) has introduced new regulations impacting the pricing of nickel ore and other nickel-related products. According to a recent survey by Shanghai Metals Market (SMM), the ministry issued two decrees, 80.K/MB.01/MEM.B/2025 and 72.K/MB.01/MM.B/2025, which outline changes to the calculation methods for Harga Mineral Acuan (HMA) and Harga Patokan Mineral (HPM) pricing.
Key Changes in Nickel Pricing Calculation
Starting March 1, 2025, the two new policies will officially take effect. Decree No. 80.K/MB.01/MEM.B/2025 establishes a new pricing structure for metallic minerals, while Decree No. 72.K/MB.01/MM.B/2025 provides clarity on HPM pricing for eight nickel-related products, including nickel ore, nickel pig iron (NPI), and mixed hydroxide precipitate (MHP).
New HMA and HPM Calculation Methods
- HMA Price Formula: The reference price is determined using the spot settlement price published by exchanges, calculated as the average value from the 5th to the 25th of the preceding month.
- Nickel Ore HPM Calculation: The formula used is:
HPM Nickel Ore = Ni% * CF * HMA Nickel
For March 2025, the first-period reference price for metallic nickel is set at $15,276.33/mt. Based on this, the updated HPM prices for different nickel ore grades are as follows:
- Ni 1.2%: $15.49/wmt
- Ni 1.6%: $27.01/wmt
- Ni 1.7%: $30.38/wmt
- Ni 1.8%: $33.96/wmt
- Ni 1.9%: $37.73/wmt
- Ni 2.0%: $41.70/wmt
Future Price Adjustments
These prices apply for the first half of March 2025. However, the Indonesian government may announce a second-period HMA and HPM price later in the month. The revised pricing structure aims to bring greater transparency and consistency to Indonesia’s nickel market, which plays a critical role in global nickel supply chains.
Industry players, including nickel miners, smelters, and traders, should closely monitor these adjustments, as they will significantly impact production costs and export pricing strategies.
