Shanghai nickel rallies on renewed concerns over Indonesia export ban

SHANGHAI, Aug 5 (SMM) – Shanghai nickel prices jumped in the morning of Monday August 5, bolstered by renewed concerns over Indonesia’s export ban on nickel ore.

The most active October contract on the Shanghai Futures Exchange hit a fresh 13-month high of 119,360 yuan/mt this morning, above the highest level of 119,240 yuan/mt in the previous rally in early July.

Concerns about Indonesia’s export ban was rekindled by market talks that the country’s Minister of Energy and Mineral Resources (MEMR) has approved the ban on raw ore exports and that details about the decision will be announced on Monday August 5.

This means that Indonesia, a major source of nickel ore, will likely advance its export ban from the previously scheduled 2022.

Some Chinese nickel ore traders told SMM that they did hear of the market talks, but Indonesian miners such as Antam and Sambas said that they have yet to receive any notices.