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Higher-grade saprolite ore, such as MB-NIO-0008 Indonesia laterite ore with 1.6% nickel content, domestic trade, delivered, $/tonne, is commonly reported on an HPM-plus-premium basis. Fastmarkets normalizes such prices reported on an HPM-plus-premium basis into an outright price by adding the relevant market premium to the HPM price, which is calculated using a benchmark formula based on the Indonesian government’s official mineral reference prices (HMA), published on the 1st and 15th of each month.
Indonesia implemented a revised nickel ore benchmark pricing formula under its HPM framework from April 15, including an increase in the corrective factor (CF) for Ni 1.6% nickel ore to 30% from 17%, adding cobalt (Co ≥0.05%), iron (Fe ≤35%) and chromium to the valuation, as well as revising the pricing unit to US dollars per wet metric tonne, according to Ministerial Decree No.144.K/MB.01/MEM.B/2026 signed by the country’s Ministry of Energy and Mineral Resources (ESDM).
Fastmarkets’ specification for MB-NIO-0008 Laterite ore with 1.6% nickel content, Indonesia domestic trade, delivered, $/tonne is: Ni 1.6%, Fe 15-25%, moisture content 35%.
Variations in the content of associated minerals in nickel ore make it difficult to uniformly quantify their impact on the HPM benchmark pricing. As a result, the market is currently seeing a divergence in spot pricing models for higher-grade saprolite ore, with spot offers and transactions being set both on an outright and HPM-plus-premium basis, according to market sources.
Fastmarkets clarifies that, given that the market is still navigating a transitional phase under the new HPM regulations, it accepts data submitted in both HPM-plus-premium format and outright-basis format for its Indonesian domestic trade nickel ore assessments and continues to convert HPM-based prices to outright prices in the same way.
Furthermore, Fastmarkets wishes to clarify that since its price assessment for MB-NIO-0007 Laterite ore with 1.2% nickel content, Indonesia domestic trade, delivered, $/tonne is commonly reported on an outright price basis, the recent changes to the Indonesian HPM calculation formula do not affect its price formation unless Fastmarkets observes that the spot pricing model for lower-grade limonite ore in the Indonesia domestic market also adjusts.
Fastmarkets is seeking feedback on how the governmental changes are impacting trade or Fastmarkets assessments. To provide feedback on these prices, or if you would like to provide price information by becoming a data submitter to these prices, please contact pricing@fastmarkets.com and basemetals@fastmarkets.com. Please add the subject heading “re: Indonesia domestic trade nickel ore.”
Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.
To see all Fastmarkets’ pricing methodology and specification documents, please go to the Fastmarkets methodology page.