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Tsingshan slashes local nickel pig iron output amid profit squeeze
Move is in line with projections that total NPI output in Indonesia will plummet from 4.76 million tonnes in 2024 to just 1.74 million tonnes this year.
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This aerial picture taken on May 14, 2023 shows a general view of PT Indonesia Morowali Industrial Park (IMIP), one of the biggest nickel producers in North Konawe, Central Sulawesi. (AFP/Riza Salman)
T
he world's largest stainless steel producer Tsingshan has cut its nickel pig iron (NPI) production in Indonesia due to shrinking profit margins and a weakening global market.
According to Lynn, the director of nickel and new energy research at Tsingshan Holding Group Co., Indonesia’s total NPI output is forecast to plummet from 4.76 million tonnes in 2024 to just 1.74 million tonnes this year.
“Our prediction for total NPI production in Indonesia is 1.74 million tonnes, not only from Tsingshan,” Lynn said on Wednesday, as reported by Antara. She declined to disclose the scale of Tsingshan’s production cuts but gave an assurance that the overall production in Indonesia is still good.
Steven Chen, the global sales head of Eternal Tsingshan Group Limited, also pointed out the stark production outlook during a panel discussion at the 2025 Indonesia Critical Minerals Conference & Expo.
Chen attributed the cuts to razor-thin margins that have plagued the nickel sector domestically and globally.
“Margins are nearing zero, and in some cases, they’ve already hit zero,” Chen said on Wednesday, Antara also reported. He warned that if current market conditions persisted, more NPI production cuts could follow, potentially forcing smaller smelters to shut down.
Read also: Ministry to curb nickel output to push up global prices
