16 January 2024 – According to recent reports, Indonesian nickel production is falling well short of expectations in some areas. Ferronickel alone is producing 100,000 MT less than forecast. And US housebuilding shares soar: 2023 a record year for the residential construction industry.
Nickel: Indonesia falls well short of production targets
According to the latest data, Indonesia has missed its production targets for ferro nickel and nickel matte, in some cases significantly. Actual production volumes for ferro nickel were almost 100,000 MT lower than forecast. In the case of nickel matte, around 4,000 MT less was produced than had been expected by the Indonesian side.
Indonesian nickel production criticised
Indonesian production recently had to contend with a serious accident in which more than 20 workers lost their lives and over 100 were injured. Since then, occupational safety and working conditions in the Indonesian industry in particular have been criticised both nationally and internationally.
US housebuilding shares soar: 2023 a record year
Outstanding returns: US housebuilder shares are causing a sensation on the market: the S&P 1500 Homebuilding Index is celebrating a huge rise – a full 76 per cent return in 2023.
Market shares secured. Fewer existing homes on the market?
No problem for house builders, who have been able to secure larger market shares. And best of all: the mood remains positive in 2024. Sales of new builds are maintaining the high level of the previous year.
Stable margins despite rising construction costs
Although construction costs could rise slightly, don’t worry: higher house prices should more than compensate for this. Profit margins, which are already above pre-pandemic levels, are therefore in safe hands according to Deutsche Bank’s analysis.
Debt reduced, distributions in sight
Housebuilders have done their homework: debt is at a historic low. This means that more profits could be distributed to shareholders in 2024.
Share buybacks are going through the roof
The major players in the housebuilding sector are planning to increase their share buybacks by almost 50 per cent compared to the previous year. We are talking about an increase to 3.5 times the volume of 2019.
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Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.
