Indonesia’s ban on ore exports will remain in place under the next government as the curbs spur as much as $18 billion in investment in processing plants by 2017, the Energy and Mineral Resources Ministry recently said.
Mostly Chinese investors are planning at least 64 facilities to process nickel, bauxite and other metals, R. Sukhyar, director general of mineral and coal, said in an interview with Bloomberg News. Investments reached $4.9 billion so far this year, said Sukhyar, who’ll keep his post in the new administration. While new President Joko Widodo had previously said he would keep the ore ban, many interested parties thought small changes might be implemented to allow some refined material out. It appears no change, period, will be made to the ban.
“It’s important to maintain the policy,” Sukhyar said on Aug. 11 in Jakarta. “Investors have made it clear to the government that they don’t want any change in policy because it could damage all their investments and they would lose trust.”
The 3-month price of nickel saw a 4.8 percent increase on Tuesday, August 12, reaching $19,570 per metric ton on the LME and making it the biggest mover for the day. After a 0.7 percent increase, the cash price of primary Indian nickel finished the day at INR 1,164 ($19.04) per kilogram. The nickel spot price weakened by 0.6 percent on the LME, settling at $18,490 per metric ton.
Chinese stainless steel prices were flat for the day. The price of Chinese ferro-chrome was unchanged at CNY 8,300 ($1,349) per metric ton. For the fifth day in a row, the price of Chinese ferro-moly remained essentially flat at CNY 145,000 ($23,564) per metric ton.
For the fifth consecutive day, the Allegheny Ludlum 316 stainless surcharge held flat at $1.28 per pound. The price of Chinese 316 stainless coil saw essentially no change for the fifth day in a row, remaining around CNY 26,000 ($4,225) per metric ton. The price of Chinese 304 stainless coil continues hovering around CNY 16,400 ($2,665) per metric ton for the fifth day in a row. The price of Chinese 316 stainless steel scrap saw little movement at CNY 16,100 ($2,616) per metric ton. The price of Chinese 304 stainless steel scrap remained essentially flat at CNY 16,400 ($2,665) per metric ton.