How to Ensure Global Nickel Industry Stability on the Back of Wildly Fluctuating Nickel Prices?

SHANGHAI, Mar 17 - Concerning the recent frenzying nickel prices, officers from China Non-Ferrous Metals Industry Association commented as follows.

Q: At the moment, downstream companies are cutting the production and stopping taking orders, and spot trade is close to a standstill. Companies are very anxious about this. How do you think of this situation?

A: Nickel is a key raw material for the production of stainless steel and new energy batteries. Chinese nickel products not only meet domestic needs, but also have entered the global supply chain. If the Chinese market is stable, the global market could be stable as well. The Chinese government is highly concerned about and attaches great importance to the security of the nickel industry chain. In fact, last year, the relevant government departments took a targeted release of national reserves like copper, aluminium and zinc measures when the prices soared, which has proved to be effective.

Q: How can the stability of the global nickel chain be ensured in the current environment? How do you view the nickel investments made by Chinese companies in Indonesia over the past few years?

A: China is highly dependent on nickel imports, and the government as well as industrial associations have encouraged domestic companies to go abroad to explore into and discover new resources.

In 2021, Indonesia has become the world's largest nickel producer, which is the result of the combination of Chinese technology, capital and Indonesian resources, which is a win-win outcome and highly recognised by the two economies. The nickel investments made by Chinese companies in Indonesia have brought benefits to the people of both countries and made an important contribution to the prosperity and stability of the region and the world.