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[SMM News] Nickel prices opened up nearly 2 per cent and managed to recover 100, 000
Apr 24,2020 09:38CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

SMM4 24: April 24, Shanghai nickel morning opening pull up, as of about 09:25, Shanghai nickel main contract 2006 reported 100750 yuan / ton, an increase of nearly 1.8%, successfully recovered 100, 000 mark.

Philippine President Rodrigo Duterte (Rodrigo Duterte) ordered an extension of the increased community quarantine, which includes Manila Metropolis, Central Luzon and Karabasson, until May 15, according to today's news. Philippine President Rodrigo Duterte (Rodrigo Duterte) has ordered an extension of increased community quarantine, including Manila Metropolis, Central Luzon and Karabasson, until May 15, according to SMM research. The central region of Luzon includes (Zambales), three Chillis provinces. As one of the main mining areas in the Philippines, Zambales is mainly medium and high nickel mine, but the shipment volume in this area is relatively small, which is expected to affect the export volume of 2-3 ships. The rest of the mining area is not within the scope of this extension, if there are no new regulations, according to the new document, may be normal shipment from May 1.

Separately, Bambang Gatot Ariyono, Indonesia's director-general of coal and minerals, said yesterday (Thursday) that Indonesia's Ministry of Energy and Mineral Resources had revised its rules on mineral prices, including setting floor prices for nickel mines and so on. The purpose of the regulation is to prevent local smelting companies from buying ores at excessively low prices, especially after the country has banned the export of raw nickel ores. The revised law was signed on April 14 but was made public only on Thursday and will come into effect on May 14. Under the new rules, the monthly benchmark price set by Indonesia's Ministry of Energy and Mineral Resources will be used as the floor price for nickel trading. The new regulations stipulate that the price of NI:1.7% grade nickel ore is US $26.35FOB / wet ton, that of NI:1.8% grade nickel ore is US $29.45FOB / wet ton, and that of NI:1.9% grade nickel ore is US $32.72FOB / wet ton.

According to SMM, the document said the ministry would allow the minimum price to be 3 per cent lower than the reserve price. Indonesia, a leading nickel producer, halted exports of nickel ore in January because it aims to build a complete domestic industrial chain by processing the ore into metals and chemicals used in electric car batteries. Before the export ban, miners had said local smelters were paying too low a price below the benchmark price announced by the Ministry of Energy and Mines, which was also used by the government to calculate royalties that miners had to pay.

The official document was issued, although the price was slightly lower than expected. However, according to SMM research, because Indonesia is rich in local nickel resources and smelters have a centralized production capacity, and has a say in nickel pricing, the mine price has been at a lower level, 1.7 per cent laterite nickel mine is generally about $20 / wet tonne, which is very different from the price exported to China (the mainstream Indonesian nickel mine in the Chinese market sold for about $61 / wet ton 1.65 per cent years ago), and the mine profit level is low. After the implementation of the ban, the Indonesian government's nickel mine trade revenue has been greatly reduced, and the interests of the miners have been damaged a lot. And the benefits of building iron plants in the short term are more difficult to show, so Indonesia has repeatedly heard rumors that it is going to open up the ban again. Once the official pricing is implemented, the benefits will be increased for Indonesian nickel miners, but in the same way, the move will raise the cost of Indonesia's nickel pig iron smelter. Costs have risen more for some of China's biggest Indonesian companies to build nickel and iron.

Recent important nickel market news related reading:

"[SMM analysis] the extension of the new isolation in the Philippines will cover the Zambales mining area until May 15, which is expected to affect the export volume of 2-3 ships.

"[SMM Analysis] New Indonesian regulations set a minimum Price for Nickel Mines the cost of Nickel Pig Iron smelters will be increased

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