Recently, multiple nickel smelters in Indonesia have suspended production lines, including PT Gunbuster Nickel Industry (GNI), which has over 20 nickel-iron production lines. Since early 2024, almost all production lines have been shut down, with only a few still running; it is estimated that more than 15 lines have stopped, approaching a complete halt. The company is awaiting a creditors' meeting to obtain new funds, possibly in August 2025, and is currently under new management. PT Indonesia Tsingshan Stainless Steel (ITSS) has suspended some stainless steel production lines and one cold rolling production line since May 2025; the specific number is unclear, but it is estimated that 2-5 lines have been suspended due to maintenance or raw material supply issues. Its nickel-iron production is expected to reach 1.74 million tons in 2025, and the overall nickel smelting production situation in Indonesia is good. PT Virtue Dragon Nickel Industry (VDNI) and PT Huadi Nickel Alloy Indonesia (HNI) have reduced production due to rising production costs and declining demand, but specific data on the number of lines suspended or cut is lacking in public sources; it may be an overall capacity reduction rather than a complete halt of individual lines. Indonesia currently has a total of 147 nickel smelter projects, with an estimated total nickel ore demand of 735.2 million tons. Among them, there are 120 pyrometallurgical projects requiring 584.9 million tons of nickel ore, with 49 in operation, 35 under construction, and 36 in planning; 27 hydrometallurgical projects requiring 150.3 million tons of nickel ore, with 5 in operation, 3 under construction, and 19 in planning. In 2025, the approved mining work plan volume for nickel ore in Indonesia is 364 million tons, up from 319 million tons last year. Indonesia has seen 28 nickel refinery production lines cease operations, of which 25 are from GNI; it is not that all 28 smelters have completely stopped or shut down. The reasons for the suspension include a bearish nickel price, declining stainless steel demand from China, and rising production costs, leading to shrinking or even near-zero profit margins, prompting some large enterprises to suspend production lines.
Recently, multiple nickel smelters in Indonesia have suspended production lines, including PT Gunbuster Nickel Industry (GNI), which has over 20 nickel-iron production lines. Since early 2024, almost all production lines have been shut down, with only a few still running; it is estimated that more than 15 lines have stopped, approaching a complete halt. The company is awaiting a creditors' meeting to obtain new funds, possibly in August 2025, and is currently under new management. PT Indonesia Tsingshan Stainless Steel (ITSS) has suspended some stainless steel production lines and one cold rolling production line since May 2025; the specific number is unclear, but it is estimated that 2-5 lines have been suspended due to maintenance or raw material supply issues. Its nickel-iron production is expected to reach 1.74 million tons in 2025, and the overall nickel smelting production situation in Indonesia is good. PT Virtue Dragon Nickel Industry (VDNI) and PT Huadi Nickel Alloy Indonesia (HNI) have reduced production due to rising production costs and declining demand, but specific data on the number of lines suspended or cut is lacking in public sources; it may be an overall capacity reduction rather than a complete halt of individual lines. Indonesia currently has a total of 147 nickel smelter projects, with an estimated total nickel ore demand of 735.2 million tons. Among them, there are 120 pyrometallurgical projects requiring 584.9 million tons of nickel ore, with 49 in operation, 35 under construction, and 36 in planning; 27 hydrometallurgical projects requiring 150.3 million tons of nickel ore, with 5 in operation, 3 under construction, and 19 in planning. In 2025, the approved mining work plan volume for nickel ore in Indonesia is 364 million tons, up from 319 million tons last year. Indonesia has seen 28 nickel refinery production lines cease operations, of which 25 are from GNI; it is not that all 28 smelters have completely stopped or shut down. The reasons for the suspension include a bearish nickel price, declining stainless steel demand from China, and rising production costs, leading to shrinking or even near-zero profit margins, prompting some large enterprises to suspend production lines.