How Will Philippine President Pronouncement against Mining Affect Nickel Price?

SHANGHAI, Jun. 6 (SMM) - Philippine President-elect Rodrigo Duterte ordered mining companies suspend environmental disruption in Surigao City, especially in Mindanao. Otherwise, they may be forced to close. How will this news influence nickel price?

What Impact on Nickel Prices after Suspension Order at Mines in Philippine Zambales? SMM Reports

SMM reckons the news compound with a falling US dollar will help LME nickel reach $8,800-9,000 per tonne this week, and the most active nickel on the SHFE is expected to touch 70,500 yuan per tonne.

“Some Philippine mining companies will be forced to slow shipments, so expectations that ore supplies from the country will fall should increase,” said one SMM nickel analyst.

“But in the long-term point of view, positive effects on nickel will wane,” the analyst added. “The country is not likely to give up the benefit from Surigao’s nickel ore exploring. Surigao mainly produces low and medium-grade nickel ore, which has lower value added compared with high-grade nickel ore. So its attractiveness for domestic and overseas investors to build plants there is very low. What’s more, any laws or regulations in the country will unlikely come into force in 2-3 years after being proposed. 

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