Global nickel industry cost summary

Wood Mackenzie's Q2 2026 Global Nickel Cost Summary: Indonesian regulatory tightening and the Middle East conflict are the two defining cost pressures of 2026. Slashed RKAB quotas and a contested HPM pricing reset are driving ore prices higher, while plans to centralise commodity exports under state fund Danantara add a further layer of uncertainty. The Middle East conflict compounds the pressure, starving HPAL operations of sulphur and pushing energy costs higher across the sector. These forces are also redrawing the competitive map. Indonesian RKEF operations are losing their long-held cost advantage over Chinese NPI peers as feedstock costs climb, while yuan appreciation and rising domestic inflation are simultaneously squeezing Chinese producers. Industry margins will improve year-on-year, but the gains are unevenly distributed — sulphide producers are pulling ahead, while laterite operations remain under pressure at current price levels.