en.Wedoany.com Reported - Data from analytics firm Earth-i shows a significant decline in global nickel smelter activity in the second quarter of 2026, with the share of idle capacity rising to 18.4% from 4% in the previous quarter. This indicator reached 21.4% in May, the highest level in two years, primarily due to reduced activity in Indonesia's nickel smelting industry. The Indonesian government's decision to cut nickel mining quotas to between 260 million and 270 million tons, leading to raw material shortages, is the main cause of the decline.

Tsingshan Group prioritized electricity supply for its aluminum production at the Weda Bay Industrial Park, leaving several of its nickel smelters idle. Combined with raw material shortages in Central Sulawesi and Southeast Sulawesi provinces, Indonesia's idle smelting capacity share rose to 17.2%. Outside Indonesia, smelter activity remained sluggish.

The most affected region is Europe. High electricity costs have made it difficult for ferronickel producers in Greece, Kosovo, and North Macedonia to compete with cheap nickel pig iron from Asia. Additionally, operational issues at Finland's Harjavalta smelter have reduced its primary nickel production capacity. Europe's idle capacity share rose to 72.7%, marking the first significant decline in global primary nickel production activity since the second quarter of 2024, with a drop of 10.2%.

Africa was the only region where smelting activity increased, due to the smaller number of operating plants in the area.