November 25, 2021 – Indonesia wants to ban raw material exports of bauxite, copper and tin. This was announced by Indonesian President Joko Widodo on November 24, 2021. An export ban on bauxite is to begin in 2022. Energy consumption by German steel manufacturers is to increase fivefold due to hydrogen production. Chinese alumina production threatened by winter. And stainless steel prices in Asia are rising.
Indonesia to ban further commodity exports
Indonesian President Joko Widodo reiterated Wednesday, Nov. 24, 2021, during the annual meeting of the Indonesian Central Bank that Indonesia will stop exporting raw materials.
Export ban on bauxite, copper and tin to come
Exports of bauxite are expected to be suspended in 2022, copper in 2023 and tin in 2024. Indonesia had already imposed an export ban on nickel in early 2020.
Indonesian value chain to be strengthened
The official aim of the Indonesian government is to use such export bans to significantly increase the value chain in the country and to encourage foreign industrial investment.
WTO: European Union complains about nickel
It is understandable that Western regions, such as the European Union, are critical of such export restrictions and even want to complain to the WTO in the case of the Indonesian nickel export ban. After all, the EU is dependent on raw material imports and has little interest in other countries emancipating themselves from the European Union – despite the vehement demand for a level playing field.
Tin prices react to Indonesian announcement
Tin prices have already reacted to the announcement of a possible export ban from Indonesia and had climbed above the $40,000 per ton mark yesterday.
Germany: Energy consumption for steel production to increase fivefold
Finally also the associations of the European steel producers notice what we had already discovered and published some months ago. The production of hydrogen for steel production alone will at least quintuple the energy requirements of German steel manufacturers. In the face of significantly increased energy prices, the associations are already calling for financial support from the taxpayer.
Fraunhofer Society critical of feasibility
The president of the Fraunhofer-Gesellschaft, Reimund Neugebauer, also believes that it would not be feasible to produce all the green hydrogen needed from renewable energies.
German hydrogen strategy fails
The German Federal Ministry of Economics and Technology had also declared the German hydrogen strategy a failure as recently as September 2021, with then-Federal Minister of Economics Peter Altmaier stating that Germany would have to continue to import 80% of its energy needs in the future – including hydrogen.
Chinese alumina production threatened by winter?
According to press reports, Chinese alumina production appears to be at risk in the winter of 2021/2022. The background is the energy shortage and the still high costs for coal, thermal coal and coke in China. As a result, significantly less alumina could be produced.
Aluminum prices could rise further
This would cause aluminum prices to rise again, since inventories of Chinese aluminum have already fallen alarmingly and, according to reports, are currently only sufficient for about two weeks.
Elsewhere, global aluminum inventories have also fallen to their lowest level in 20 years, as reported yesterday.
Stainless steel prices rise in Asia
Market sources report that Asian stainless steel prices have risen again due to raw material and logistics costs. This continues the price trend of recent days, which was already evident in stainless steel futures.
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