SHANGHAI, Jul. 10 (SMM) – In news published in mid June, SMM notes that Indonesia’s NPI market share is and will be increasing, and its NPI output will approximately reach up to China’s output level in 2019. Its changes in production costs will also play an increasing influence on the market.
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In order to give a clear picture, SMM calculates NPI production costs in Indonesia by different production technology.
According to SMM estimation, NPI cash production costs in Indonesia will range between $5,300-12,850 per tonne (Ni content), with RKEF cash costs at $5,300-7,100 per tonne (Ni content). In China, NPI cash production costs will be around $7,380-9,660 per tonne (Ni content), enjoying no cost advantages compared with RKEF NPI producers in Indonesia.
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Is there any downward room still available for Indonesian NPI production costs?
The answer is YES!
The RKEF NPI production technology in Indonesia, which has just been introduced not long ago, has room to improve and upgrade, and this will help reduce power costs, which makes up for about 25 per cent of total costs, in NPI production in the country, SMM points out.
For details, please see SMM Nickel Monthly Report.
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