Joko Widodo Would Keep Ore Ban if He Wins Indonesian Election, Nickel Relaxes

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Nickel fell as much as 2 percent in London yesterday as unofficial counts showed Jakarta Governor Joko Widodo won the most votes Indonesia’s election, putting him ahead of Suharto-era general Prabowo Subianto. While the market perceives Widodo’s market-friendly policies as an indication that the ban will be lifted or at least watered down, that’s unlikely, said Australia & New Zealand Banking Group Ltd. in a note obtained by Bloomberg News.

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Both Widodo and his opponent Prabowo Subianto claimed victory in the contest to lead Southeast Asia’s largest economy. Jokowi, had about a five percentage point lead, according to unofficial counts from two survey companies that declared him the winner. The rupiah surged to a seven-week high as the currency market reopened today and the Jakarta Composite Index rose to the highest since May 2013.

Widodo would keep the ore export ban, Jusuf Kalla, his vice presidential candidate, said during the campaign. A Widodo government would seek to boost exports of processed minerals rather than raw ores, according to a party policy document.

Following two days of increases, the Indian nickel cash price dropped by 0.9 percent to end at INR 1,174 ($19.64) per kilogram on Thursday, July 10. On the LME, the spot price of nickel inched up 0.4 percent to $19,510 per metric ton. After a 0.4 percent increase, the nickel 3-month price finished the day on the LME at $19,600 per metric ton.

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Chinese stainless steel closed mixed on Thursday. The price of Chinese ferro-chrome was unchanged at CNY 8,300 ($1,339) per metric ton. For the fifth consecutive day, the price of Chinese ferro-moly held flat at CNY 145,000 ($23,387) per metric ton.

The price of Chinese primary nickel gained 0.5 percent, finishing at CNY 131,050 ($21,137) per metric ton. For the fifth day in a row, the Allegheny Ludlum 316 stainless surcharge remained essentially flat at $1.31 per pound. The price of Chinese 316 stainless coil remained essentially flat at CNY 26,000 ($4,194) per metric ton. The price of Chinese 304 stainless coil continues hovering around CNY 16,400 ($2,645) per metric ton for the fifth day in a row. The price of Chinese 316 stainless steel scrap held steady at CNY 16,100 ($2,597) per metric ton.

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