Nickel Prices Not Yet Reacting to Indonesia’s Export Ban

Reuters reported that Indonesia’s ban on the export of raw minerals could harm Chinese factories manufacturing stainless steel; however, it is likely to help struggling nickel miners.

The ban is set to come into effect on Sunday.

As quoted in the market news:

Nickel prices have so far failed to react to the looming ban, reflecting widespread scepticism in the market that Indonesia will stick to its guns given a history of backing away from controversial policies in the past.

But Jakarta has recently held firm on moves to bolster its tin industry, and its latest proposal on mineral ore exports will only delay the full impact of the ban in some areas.

‘If the ban stays in place, nickel prices sustain a rally and costs are passed on, that would eventually feed into end-use consumer goods – pots and pans, to buildings, to factories,’ says Barclays analyst Sijin Cheng in Singapore.

Click here to read the full Reuters report.