Qingshan began reducing nickel iron production in Indonesia in June to focus on developing its electrolytic aluminum business.

Recent market news indicates that Tsingshan Group plans to implement production cuts for some nickel-iron companies within the Indonesia Weda Bay Industrial Park in June 2026.

The scope of this production cut focuses on 22 nickel-iron smelting enterprises within the IWIP park, including some of Tsingshan's own capacity. The core objective is to allocate the park's limited power supply to prioritize the commissioning and power supply for the 250,000-ton electrolytic aluminum project of Huaqing Aluminum, a joint venture with Xinfa Group.

The specific proportion of production cuts has not yet been clarified at this stage; industry estimates suggest that monthly ferronickel production in the park may decrease by up to 3,000 metal tons on a month-on-month basis. This adjustment stems from multiple factors: current profitability in the aluminum sector far exceeds that of the nickel-iron industry, coupled with the lag in power plant construction progress behind smelting projects, leading to tightening power supply and demand. At the same time, Tsingshan is using this opportunity to accelerate its layout in the aluminum industry and replicate the integrated full-industry-chain development model.

In terms of market impact, as Indonesia is a core global nickel-producing region, this production cut will tighten the nickel-iron market supply; meanwhile, the successful commissioning of the new electrolytic aluminum project will add an annual capacity of 480,000 tons of high-purity aluminum, effectively supplementing the global aluminum market supply.