Weakness in Indonesia weighs heavy on global nickel smelting activity

Global nickel smelting activity reportedly fell for the first time in four months in June.

Data from Earth-i's SAVANT metals monitoring platform reveals that the global inactive capacity index rose from 3.5% to 15.9%.

While inactivity climbed across all classes of metal, the most important contributing factor is nickel pig iron (NPI) operations in Indonesia, where inactivity jumped by an average of 7.5% month-on-month to 14.4%, the highest level in two years.

This is not unexpected as SAVANT monitoring last month indicated that Tsingshan was likely to halt operations at its joint venture plants in the Morowali Industrial Park.

As a result, inactivity at NPI smelters in Indonesia now sits 9% above the same period a year ago.

Only in China did smelting activity increase over the month, by 4.8%, so that the country's inactive capacity fell to 11.6%, second only to Asia & Oceania at 8%.

However, the low reading for the latter could be misleading as this region has already seen the closure of significant capacity, due to either weak market conditions (KNS’ Koniambo in New Caledonia and BHP’s Kalgoorlie operations in Australia).

Most of the remaining plants in this cohort have shown stable operating signals so far in 2025, with the notable exception of Myanmar CNMC’s Taguang Taung smelter in Myanmar, which has been inactive since April 2024, due to conflict.

Of the other regions, activity declined in both Africa and the Americas to 26.6% and 45.1%, respectively.