Indonesia forecasts that nine nickel-processing plants may be completed this year after the largest mining producer banned raw ore exports in January, spurring a rally in refined prices to the highest level since 2012, Bloomberg Businessweek reports. The plants include two ferronickel and seven pig-iron nickel smelters, according to data from the Energy and Mineral Resources Ministry. One chemical-grade alumina plant is also scheduled to be completed this year, the data showed.
Southeast Asia’s largest economy is seeking to force a move toward processed commodities, betting that repercussions from the ban such as job losses will be offset by investment in new plants and output of higher-value products.
Yesterday, the spot price of nickel experienced yet another a large increase, rising 3.7 percent on the LME to land at $20,105 per metric ton. Monday closed the nickel 3-month price at $20,125 per metric ton on the LME, after moving up 3.7 percent. At INR 1,251 ($20.90), the Indian nickel cash price finished the market day up 2.3 percent per kilogram.
On Monday, May 12, the day’s biggest mover was the price of Chinese primary nickel, which saw a 10.9 percent increase to CNY 147,250 ($23,642) per metric ton. The price of Chinese 304 stainless steel scrap was unchanged at CNY 16,400 ($2,633) per metric ton. The price of Chinese 316 stainless steel scrap saw essentially no change for the fifth day in a row, remaining around CNY 16,100 ($2,585) per metric ton. The price of Chinese 304 stainless coil continues hovering around CNY 16,400 ($2,633) per metric ton for the fifth day in a row. For the fifth consecutive day, the price of Chinese 316 stainless coil held flat at CNY 26,000 ($4,175) per metric ton.
The price of Chinese ferro-chrome held steady at CNY 8,300 ($1,333) per metric ton. The price of Chinese ferro-moly saw little movement at CNY 145,000 ($23,281) per metric ton.