SHANGHAI, Oct 29 (SMM) – Shanghai nickel prices moved higher on Tuesday October 29 after reports on Indonesia is halting nickel ore exports immediately. Indonesia's investment agency chief Bahlil Lahadalia said on Monday October 28 that some local nickel miners had agreed to stop exporting nickel ore with immediate effect.
In addition, it was also heard that exports to be shipped from Indonesia will be bought by local smelters at an international price level, excluding taxes and transfer cost.
Some Indonesian plants confirmed that the export ban was carried out with immediate effect, while most traders and mines have not received official notice about an immediate ban, market participants told SMM.
The statement followed after a sudden check on the illegal export of nickel ore across Indonesian mines last Friday night. SMM learned that some export vessels were detained for inspection, and delivery from some mines was halted.
According to an SMM survey, the inspection targeted exports of nickel ore with a grade above 1.65% and shipments by miners without export quotas.
As of October 29, the Indonesian government has not announced specific penalties for non-compliance.
Indonesia, the world's biggest nickel ore producer, in late-August brought forward the ban on nickel ore export to January 2020 from an original schedule of 2022.
The most-traded nickel December contract on the Shanghai Futures Exchange hit a high of 136,630 yuan/mt on October 29, the highest level over the past two weeks, before it trimmed gains and ended 0.17% lower on the day at 132,640 yuan/mt.