Nickel Pig Iron (NPI)
A lower-cost, lower-purity ferronickel alloy produced from nickel ore in a rotary-kiln electric furnace, used mainly as a cheaper nickel input for stainless steel producers.
Covered in 3 MetalsCost.com News Intelligence articles, most recently on September 26, 2026.
Overview
Nickel pig iron is a low-purity ferronickel alloy developed as a cheaper alternative to refined nickel for stainless steelmaking. It's smelted directly from lateritic nickel ore — lower-grade material unsuited to the sulfide-ore route used for high-purity nickel — in rotary kiln-electric furnace (RKEF) plants, skipping the electrorefining step entirely and accepting lower nickel content in exchange for lower processing cost.
Indonesia's Dominance
Indonesia has become the dominant NPI producer since banning raw nickel ore exports and pulling smelting capacity onshore; the International Nickel Study Group forecast the country would produce about 2 million tonnes of NPI in 2025, roughly 53.5% of global output. That shift reordered the nickel market, since Indonesian NPI-derived supply now competes directly with, and has pressured prices for, higher-purity Class 1 nickel from cathode and briquette producers.
Sources
- Indonesia's ~53.5% share of global NPI output forecast for 2025 — INSG: Indonesia's nickel pig iron production may reach 2 million tons in 2025 (2025)
Coverage
Indonesia's Morowali Nickel Hub Cuts NPI Output on El Niño Drought
Indonesia's Morowali Industrial Park has ordered nickel pig iron producers to cut output after an El Niño-driven drought cut cooling-water supplies, a reduction estimated at 100,000 tonnes that helped push LME nickel back above $16,600 a tonne.
Indonesia Cut Its Nickel Mining Quota by 30%, But Prices Are Still Falling and Smelters Are Idling
Indonesia cut its 2026 nickel ore mining quota by roughly 30%, but LME nickel has fallen below $17,000 a tonne as surging Philippine ore imports offset the cut and Indonesian smelters run below capacity instead.
Nickel Industries' Hengjaya Mine Earnings Jump 58% as New Nickel-Cobalt Plant Starts Production
Nickel Industries' Hengjaya Mine posted a record US$45.7 million quarterly profit, up 58%, while its new Excelsior Nickel Cobalt plant produced its first battery-grade nickel-cobalt output in July 2026.
