20 November 2024 – Nickel prices on the SHFE rose by around 1.8% on Wednesday. Nickel on the LME also rose significantly at the start of trading. Reports of falling nickel mining quotas are coming from Indonesia. And iron ore prices in China continued to rise on Wednesday.
SHFE nickel prices rose on Wednesday
SHFE nickel futures rose by around 1.8% on Wednesday. Asian spot market prices for nickel recorded an increase of 1.1%. Three-month nickel prices on the London Metal Exchange (LME) rose by more than 1.8% at the start of trading today and were already above USD 16.100/MT.
Indonesia: Falling nickel mining quotas and new license fees?
Reports from Indonesia indicate that not only could the approved quota volumes in nickel mining fall by up to 27% by 2026, but the Indonesian government also wants to make adjustments to non-tax state revenues from nickel mining. To this end, the so-called “license fees” for laterite nickel ores with a nickel content of less than 1.5% are to be significantly reduced if they are to be used as a raw material in battery production. This would further limit the availability of nickel ore in other areas, such as the production of stainless steel.
Indonesia’s Jan-Oct nickel ore imports surge by 50 times
Last week, there were already media reports that nickel ore imports to Indonesia in the period from January to October 2024 increased 50 times year-on-year and currently stand at more than 9.3 million tons. In recent months, Indonesian officials have repeatedly warned that the country’s nickel reserves are running low and that existing ore stocks should therefore be preserved for the domestic industry.
Iron ore futures continue to rise
Prices for iron ore futures rose for the third time in a row on Wednesday, supported by robust demand for steel and continued hopes of further economic stimulus in China, the main consumer country.
The most traded January iron ore contract on the Chinese Dalian Commodity Exchange (DCE) DCIOcv1 improved by 1.1%. Chinese port stock prices also increased again, rising by up to 2.6% depending on the region, origin and quality.
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