Philippine ore price center of gravity accelerates downward, Indonesia's multi-element HPM implementation triggers deep negotiations between buyers and sellers

On April 27th, in the Philippines, as the rainy season in the main production areas ends, the increase in supply and the severe profit inversion for downstream smelting plants have formed a double negative, causing the CIF price for 3% grade nickel to fall to $55–57 per wet ton. Regarding Indonesian nickel ore, smelting plants are still using the old HPM and old premium system for procurement; since the implementation of the new formula is still in the stage of negotiation between mines and smelting plants, the overall market sentiment is cautious. Smelting plants generally expect the total purchase price to remain stable, meaning that the cost pressure from the HPM increase will be offset by a corresponding decrease in premiums. Smelting plants are currently discussing premium pricing for May. Due to the sharp rise in HPM prices, smelting plants are strongly willing to lower premiums to share this part of the cost pressure, and there is a high possibility that premiums will decline further. (SMM)