Indonesian Nickel Producer Ceria Plans Ferronickel Expansion Amid Global Oversupply Concerns

Despite growing concerns over a global nickel surplus, PT Ceria Nugraha Indotama, a leading Indonesian nickel producer, has announced plans to expand its ferronickel production capacity. The move highlights the company’s confidence in long-term demand for high-grade ferronickel, especially in Western markets.

In April, Ceria officially launched its Rectangular Rotary Kiln Electric Furnace (RKEF), which has an annual output capacity of 63,200 metric tonnes of ferronickel. The product contains approximately 22% nickel, catering to industries such as stainless steel production and specialty alloys.

According to Corporate Secretary Imelda Kiagoes, speaking at a recent Shanghai Metals Markets (SMM) conference, the company is exploring a second phase of expansion, which would require $200 million in investment. Construction is anticipated to begin later this year, contingent on securing funding from financial institutions.

This announcement comes at a time when analysts are forecasting a prolonged oversupply in the global nickel market, driven by surging production capacity across Southeast Asia and softening demand from both the stainless steel and EV battery sectors. Nonetheless, Ceria remains optimistic, citing continued demand from the U.S. and European markets as a key driver for its strategy.

At YES Stainless International, we monitor these market developments closely, as nickel price fluctuations directly influence the cost of stainless steel raw materials. If you have projects that require stainless steel products, reach out to our team today for the latest updates.