Jakarta (Benchmark News) – Although the export of nickel ore taps began reopened by the Government of Indonesia, the commodities market this metal remained stable due to the predicted level of limited supply and increasing consumption projections.
At the close of trade Friday (20/1), the price of nickel on the London Metal Exchange’s stock plummeted 2.46% or 249.5 points toward US $9.648 .5 per ton. That figure still showed increased 9.19% throughout the current year.
Macquarie Research in publications deliver government policies, Indonesia export nickel ore opportunities opening not immediately impose global markets. However, the Outlook for nickel prices are experiencing pressure in the near future.
On Wednesday (11/1), the President of Joko Widodo affirms the Government Regulation number 1 2017 about changes over the Fourth Government Regulation Number 23 in 2010 on the implementation of the business activities of Mineral and Coal Mining.
To follow up the beleid, has published two Regulations the Minister of MINERAL RESOURCES, namely Candies and MINERAL RESOURCES No. 5/2017 about increased added value Minerals through Mineral extraction and processing activities in the country, and candy and MINERAL RESOURCES No. 6/2017 of the Ordinance and the terms of the grant Recommendations implementation of Mineral Sales abroad Results processing and original.
In the Candy and MINERAL RESOURCES No. 5/2017 written nickel low levels below 1.7% and low levels of bauxite under 42% mandatory purification facilities are absorbed by a minimum 30% of the input capacity of the smelter. When domestic needs low levels of nickel and bauxite low levels have been met, then the rest is sold to a foreign country.
As for in Candy and MINERAL RESOURCES No. 6/2017, listed subject plan sales abroad, one of them containing the type and quantity of metal minerals has met minimum reprocessing restrictions/nickel levels 1.7%.
According to the Macquarie analysts, there such a regulation making the PT Aneka Tambang Tbk. (ANTM) can send nickel ore with a capacity of 70,000 tonnes per year in 2017 stemming from stock, then fade from the new mining. As for the other companies are not going to do the export.
With the calculation of the volume of it, then the negative sentiment overshadow nickel ore prices and increasing cost of production of nickel pig iron (NPI) in China. As a result of these factors influenced global nickel prices.
“In such a scenario, the price of nickel will be in the range of US $9,000-$ 10,000 US per ton,” said the research.
Production nickel NPI via the rotary kiln electric furnace (RKEF) is a key determinant of prices on the LME. About half of these costs are derived from the price of the ore. Upon calculation of the price of nickel that can be depressed to below US $10,000 per ton.
However, Macquarie estimates deliveries of nickel ore from other countries will not grow as Indonesia, fearing to make global prices depressed. Therefore, the world nickel market forecast to remain stable, so that prices remain potentially strengthened.
“Other manufacturers worrying about the production and delivery of higher nickel and even into the ‘ Cannibal ‘, because of the potential of low prices depress income,” he explained…(Red).