Indonesian Export Ban Still Supporting Nickel Prices

Platts reported that according to Tony Parry, an analyst at Resource Capital Research, Indonesia’s nickel export ban is what’s continuing to keep nickel prices supported.

As quoted in the market news:

Nickel spot price was currently around $8.40/lb, which was slightly down from an average of $8.70/lb in May, he pointed out. At the end of December 2013, the price was around $6.34/lb, he added.

While nickel is expected to maintain this price level for the next 6-12 months, Parry said there could be a decline once new production comes online. Several producers are trying to restart units or startup new plants, he added.

He cited Australian junior explorer Axiom Mining’s plans to start production at its Isabel nickel laterite mine in the Solomon Islands, which could bring around 2 million mt/year of DSO to the market within 15-18 months.

Click here to read the full Platts report.