Eternal Nickel LME listing reshapes Indonesian nickel trade

Eternal Nickel

The Eternal Nickel LME listing marks a new phase for Indonesian nickel as PTENICO cathodes move toward global benchmark status and add fresh liquidity to a market already facing surplus pressure. Eternal Nickel, a subsidiary of China’s Tsingshan Group, has applied for the Eternal Nickel LME listing with full-plate nickel cathodes produced at Weda Bay in North Maluku, where nameplate capacity reaches 50,000 t/yr. As a result, the Eternal Nickel LME listing would cement Indonesia’s role in refined nickel, not just intermediate products, while also deepening the pool of deliverable brands for price discovery on the London Metal Exchange.

Eternal Nickel LME listing adds to Asian LME nickel capacity

The proposed Eternal Nickel LME listing comes only months after the first Indonesian brand, DX-zwdx, secured LME approval in 2024, lifting new Asian registered capacity to 232,600 t since mid-2023. PTENICO cathodes would be the second Indonesian nickel brand listed, reinforcing the rapid shift of refined nickel capacity toward Indonesia as high-pressure acid leach and conversion projects mature. Meanwhile, surplus nickel has been flowing into LME warehouses because many producers find LME delivery the most efficient route to immediate liquidity. LME nickel stocks climbed to 224,700 t in September from 162,336 t in January, with Chinese-origin material surging to 152,454 t from 81,564 t. Therefore, any additional Indonesian cathode tonnage registered on the LME is likely to weigh further on prices, even if it improves tradability and hedging options for consumers.

Surplus stocks pressure prices as more Indonesian cathodes line up

The Eternal Nickel LME listing would arrive in a market where the official three-month LME nickel price has stayed rangebound around $15,000–16,000/t, averaging just $15,432/t in 2024. However, producers continue to commission new cathode capacity and are actively preparing LME applications, treating warehouses as an outlet for surplus production rather than cutting supply. Indonesian producer Nickel Industries Limited plans to add nickel cathode output, while major producer QMB is upgrading its technology to produce LME-grade cathodes, both from plants in Central Sulawesi. As these projects advance, more Indonesian cathode brands are expected to seek registration, reinforcing the structural oversupply narrative and keeping spot prices under pressure, even as stainless steel and battery sectors look for cost advantages.

The Metalnomist Commentary

The Eternal Nickel LME listing underlines how Indonesia is moving rapidly up the nickel value chain from ore and intermediates to globally deliverable cathode brands. For traders and hedgers, more Indonesian brands enhance liquidity and flexibility, but they also lock in a heavier overhang of exchange stocks that can cap rallies. Strategically, the trend raises important questions for non-Indonesian producers: competing on cost alone against the Weda Bay and Sulawesi hubs will be tough, making product differentiation, specialty alloys and long-term customer partnerships more critical than ever.

SHFE Indonesian Nickel Cathode Brands Strengthen Indonesia’s Class I Nickel Role

The Shanghai Futures Exchange

SHFE Indonesian nickel cathode brands have gained a major credibility boost after the Shanghai Futures Exchange approved two Indonesian-produced nickel cathode brands for delivery against SHFE contracts. The approvals cover PTENICO from Eternal Nickel Industry and DX zwdx from CNGR Dingxing New Energy.

The approvals mark an important step in Indonesia’s move from nickel ore and intermediate products toward exchange-deliverable Class I nickel. Indonesia has already become the world’s dominant nickel processing hub, but exchange approval gives its refined metal greater financial-market recognition.

SHFE Indonesian nickel cathode brands also reinforce the role of Chinese-backed industrial parks in building Indonesia’s downstream nickel value chain. Both approved producers are linked to major Chinese groups with strong positions in stainless steel or battery materials.

The development matters because exchange-deliverable nickel sits at the intersection of physical supply, futures market liquidity and industrial procurement. Approval by SHFE gives the brands wider acceptance among Chinese market participants and strengthens Indonesia’s role in Class I nickel trade.

Tsingshan and CNGR Extend Indonesia’s Refined Nickel Platform

Eternal Nickel Industry’s PTENICO brand was approved by SHFE after previously being listed on the London Metal Exchange on 16 December 2025. The company is a subsidiary of Chinese stainless steel producer Tsingshan Holding Group.

The plant is located in the Weda Bay Industrial Park in Halmahera, North Maluku. It uses an electrolytic process and has 50,000 t/yr of nickel cathode capacity, with nickel content of 99.96%.

Tsingshan’s involvement is strategically important. The group transformed global nickel markets through Indonesian nickel pig iron and stainless steel expansion, and it is now extending that influence into refined Class I nickel.

CNGR Dingxing New Energy’s DX zwdx brand was also approved by SHFE. The plant is located at the Indonesia Morowali Industrial Park and also uses an electrolytic process. It has 50,000 t/yr of nickel cathode capacity, with nickel content of 99.96%.

CNGR Dingxing is a subsidiary of CNGR, a major Chinese lithium-ion battery cathode active material precursor producer. This gives the brand a direct connection to battery materials supply chains, not only stainless steel demand.

The LME accepted CNGR Dingxing’s Indonesian nickel cathode brand in May 2024. It also approved cobalt cathode produced by CNGR in Qinzhou, Guangxi, in March, showing the company’s expanding exchange-approved metals footprint.

Together, PTENICO and DX zwdx represent 100,000 t/yr of Indonesian nickel cathode capacity. Their SHFE approval gives Indonesia a stronger position in futures-linked refined nickel supply.

Exchange Approval Changes Nickel Market Positioning

The two brands are the first Indonesian-produced nickel cathodes approved by SHFE for delivery. That is significant because Indonesia’s nickel rise was initially built around ore, nickel pig iron, ferronickel, matte and mixed hydroxide precipitate.

Exchange-deliverable cathode is a different market category. It requires tighter quality control, brand recognition and acceptance by financial and physical market users.

SHFE has approved Chinese-produced nickel cathode brands totalling 121,000 t since 2024. Adding Indonesian brands expands the pool of deliverable material and shows how Indonesia is being integrated into China’s nickel pricing and delivery system.

This could gradually influence nickel market structure. More deliverable Indonesian metal may improve flexibility for Chinese buyers, increase acceptable supply for futures settlement and strengthen the link between Indonesian production and Chinese exchange pricing.

The approvals also come during a period of Class I nickel oversupply. LME and SHFE inventories have risen as new refined nickel capacity has entered the market faster than demand growth from batteries and alloys.

Against that backdrop, brand approval can become a competitive advantage. Producers with exchange-deliverable status may have better access to financing, trade channels and customers that require recognised specifications.

For Indonesia, the approval supports a broader industrial policy objective. The country wants to capture more value from its nickel resources by moving beyond raw ore and intermediate exports into higher-value metal and battery materials.

For China, the approvals deepen supply-chain integration with Indonesian assets. Chinese companies are not only investing in Indonesian mines and smelters; they are building exchange-recognised refined metal capacity that can serve Chinese industrial and financial markets.

The Metalnomist Commentary

SHFE approval of Indonesian nickel cathode brands confirms that Indonesia is moving deeper into Class I nickel, not only bulk stainless and battery intermediates. The strategic issue now is whether this new exchange-deliverable capacity strengthens market liquidity or adds further pressure to an already oversupplied refined nickel market.