25 May 2022 – Indonesia plans to introduce an export ban on low grade nickel products with nickel content below 60%. This is likely to exclude many nickel pig iron, sulfate and also nickel matte products from the international market. British trade authority recommends import tariffs of up to 29 percent on aluminium extrusions from China. And German purchasing managers in a good mood and Germany still on an upward trend.
Indonesia: Export ban on low content nickel products
Indonesia plans to introduce an export ban on low content nickel products with nickel content below 60%.
“Indonesia will no longer allow exports of nickel processed (levels) below 50 percent, it must be 60-70 percent,” Minister of Investment/Head of Investment Coordinating Board (BKPM) Bahlil Lahadalia said in the Indonesia Economic Outlook 2022 and The G20 Presidency, Monday according to media reports.
The background is the Indonesian government’s focus on shifting the economy to higher value-added products while building an ecosystem for electric vehicle battery manufacturing.
Will Indonesia impose more export taxes?
Many countries believe that the battery industry must be located near an electric vehicle factory. “This is a domestic policy of certain countries, but we also have a way out. If we are forced to supply raw materials, we will impose more export taxes,” he said.
Export ban likely to affect nickel pig iron, nickel sulfate, but also nickel matte
With this announcement, Indonesian low grade nickel products, such as nickel pig iron (4 – 13% nickel content) widely used in China for stainless steel production, nickel sulfates (about 22% Ni), nickel chlorides (about 22%), but also nickel matte with nickel content less than 60% are likely to be missing from the international market in the near future.
Tsingshans nickel bluff burst has the potential to drag a nickel mine into the abyss – what’s next?
At the same time, Fitch Ratings has just downgraded an Indonesian nickel mine project in its rating. The company Nickel Mines Limited, which belongs significantly and via several corners to the Tsingshan Group, was punished in the rating among other things because of the burst nickel bluff of the parent company and its general lack of transparency. But also otherwise the company seems to have some problems with the financing of upcoming investments and to show large gaps here.
Tsingshan Holding, which has invested intensively in various nickel projects internationally, could have endangered other companies within the group with its burst nickel bluff.
UK may impose duties of up to 29% on Chinese aluminum extrusions
Imports of extruded aluminum into the United Kingdom could become significantly more expensive for suppliers in the People’s Republic of China in the near future, as British trade officials investigate complaints from domestic extruded aluminum producers that Chinese exporters are unfairly undercutting their business.
The U.K.’s Office of Trade Remedies said Friday it has found that Middle Kingdom exporters have been importing aluminum extrusions into British ports at low prices for some time. As a result, the TRA recommended import duties of up to 29 percent in an interim report released the same day.
The TRA’s interim report, the Statement of Essential Facts, is now available for comment.
Germany: Purchasing managers in good mood
The preliminary purchasing managers’ indices for May continue to paint a positive mood picture for the German economy. Contrary to expectations, the overall index rose from 54.3 to 54.6 points and thus remains well above the threshold of 50, which indicates an expanding economy.
Continuing German upturn
The continuing German upturn is attributed in particular to the services sector, which is benefiting from catch-up effects due to the removal of the Corona restrictions. The preliminary purchasing managers’ indices for the euro zone as a whole also remained well above the 50-point threshold in May. The overall index fell only slightly from 55.8 to 54.9 points. There is currently no sign of a recession in the euro zone.
- India, are EU steel producers now raising prices?
- Actual Indian stainless steel exports already hit with 15% tax
- India imposes up to 50% export taxes on iron ore, stainless steel, steel
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