Eramet Stock: Significant Decline Following Announcement of Reduced Nickel Quota in Indonesia

Reduced Production Quota for PT Weda Bay Nickel

On February 11, Eramet confirmed that its joint venture PT Weda Bay Nickel was notified by the Indonesian authorities of an annual production and sales volume limited to 12 million metric tons, compared to an initially planned RKAB of 32 million metric tons for 2025, revised to 42 million in July 2025. This allocation represents a significant reduction from the quotas previously assigned. PT Weda Bay Nickel, a strategic site for the group's nickel activities, is co-owned by Eramet along with local and international partners. Indonesia, the world's leading nickel producer, has been regulating the volumes extracted on its territory for several years to better control the global supply and support local ore processing. This decision directly impacts the revenue prospects of Eramet's nickel division, in a context where metal prices remain under pressure on international markets.

Technical Analysis of Eramet's Stock Performance

From a technical perspective, Eramet's stock price has significantly fallen below its 50-day moving average, currently at 64.10 euros, confirming a shift in short-term dynamics towards a bearish orientation. However, the stock still maintains a positive gap with its 200-day moving average (55.04 euros), which serves as the next reference level before the technical support identified at 54.30 euros. The RSI at 33 is approaching the oversold zone, generally associated with intensive selling pressure. It is noteworthy that despite this pronounced weekly correction, the three-month performance remains positive at 15.34%, while the annual gain is set at 6.56%. The amplitude of monthly volatility, measured at 21.64, reflects significant price movements in the recent period, exacerbated by the uncertainty related to Indonesian regulation.