Prices of industrial metals have had a disappointing start to 2024, with nickel experiencing a significant price plunge. Nickel prices have fallen by 47% in 2023 and have reached their lowest level in over three years. The decline in prices can be attributed to the challenging macro backdrop in China. The supply surge from Indonesia, driven by a ban on nickel ore exports, has led to the closure or suspension of several nickel mines. BHP Group, Panoramic Resources, and First Quantum Minerals have announced the closure or suspension of their nickel operations in Australia. Additionally, Glencore plans to suspend production and sell its stake in the Koniambo ferronickel operations in New Caledonia. Despite these mine closures, rising primary nickel output from Indonesia is expected to keep the market in surplus this year. Indonesia's share of the nickel market is growing, and the country is unlikely to slow down its nickel supply. The newly elected president of Indonesia, Prabowo Subianto, is expected to continue the current government's mining policies. [5df18c14] [296afaec]
Nickel Industries Limited, an Australian public company, is a shining example of successful collaboration between Australia and the ASEAN region. The company owns a portfolio of nickel processing assets in Indonesia and has a long history in the country. It produces nickel matte for the electric vehicle supply chain and nickel pig iron for the stainless-steel industry. The company is transitioning its production to focus on the EV battery supply chain and has recently invested in the Huayou Nickel Cobalt HPAL project. Nickel Industries is also investing in the Excelsior Nickel Cobalt project, which will diversify its production and reduce its carbon emissions. The company is committed to sustainable operations and has set targets for carbon intensity reduction and net zero emissions. Nickel Industries' operations demonstrate the benefits of trade, investment, and sustainable development between Australia and ASEAN. The company's achievements inspire more opportunities for collaboration and innovation in the future. [8c4cc042]
Finnish Economy Minister Ville Rydman has expressed concern over a potential ban on nickel imports to the EU. He argues that such a ban would have disastrous consequences for Western countries, including Finland. Rydman justifies the trade of Russian nickel by stating that Western countries depend on the nickel plant, and an import ban at this time would affect them more than Russia. Nornickel Harjavalta, the largest nickel refining plant in the EU, plays a significant role in supplying nickel to the European steel and battery industry. The plant's exports are valued at around one billion euros per year. Rydman also highlights the impact of a ban on nickel imports on the global food supply, as it would harm the import of fertilizers. He acknowledges the Western world's dependence on Russian nickel and fertilizers and acknowledges ongoing efforts to find substitutes, although the process is not quick. [c787b60d]