Huitong.com July 11th - The price of nickel has risen significantly in January this year. Nickel prices have risen from $13,967/ton at the end of last year to $19,070/ton at the end of June, which is stronger than other base metal.
In January of this year, the Indonesian government issued a ban on export of red clay nickel mines. Indonesia is the world's largest exporter of nickel ore, accounting for 18% to 20% of global supply. This has caused global nickel producers, importers, shipping companies, and circulation industries to be affected by the entire distribution chain that relies on imported laterite nickel ore production and operations.
According to the observation and analysis of port inventory data, it was about 25.8 million tons at the beginning of January, about 25.25 million tons at the beginning of February, about 23.36 million tons at the beginning of March, about 20.24 million tons at the beginning of April, and about 19.3 million tons at the beginning of May. It is about 22.74 million tons. A recent report by Macquarie Bank shows that if the Indonesian raw ore export ban continues, there will be a gap between supply and demand in the global market within five years. Indonesia's nickel ore exports will fall 82% this year to 113,000 tons of metal; global nickel ore mining will fall 21% to 1.8 million tons of metal.
Morgan Stanley expects that the global nickel metal market demand will be higher than output in the next five years, and nickel shortage will occur for five consecutive years. Indonesia hopes that by issuing a ban on raw ore exports, more exporters will build smelters in the local area, thereby increasing the added value of Indonesian mineral products.