Indonesia Nickel Makers Face Sulphur Supply Disruptions
Indonesian nickel refiners may cut production as Middle East shipping disruptions squeeze sulphur supplies. Low stockpiles and rising costs threaten output.
Nickel producers in Indonesia are facing potential production cuts as escalating shipping disruptions in the Middle East threaten the supply of sulphur, a critical component in the refining process. The archipelago, which accounts for more than half of global nickel output, relies on the Middle East for approximately 75% of its sulphur requirements.
The tightening supply stems from instability in the Strait of Hormuz following military actions involving the United States and Israel against targets associated with Iran, alongside retaliatory measures from Tehran. This geopolitical friction is squeezing the flow of a commodity that accounted for nearly a quarter of global production last year.
