Category: Commodities

The Nickel Country (8)

Nickel was settled at US$15,791 per ton in London Metal Exchange (LME) Tuesday (Oct 120) to represent 42.8% gain from its bottom this year. It is indeed a great news for Indonesia, which is currently the largest exporter. Nickel industry in Indonesia is increasingly attractive with more corporate actions, including initiatives to build an end-to-end electric battery solution from China’s CATL and South Korea’s LG Chemical. 

Read More

The Commodities

Decision from major economies to reimpose stricter measures to contain second wave of Covid-19 pandemic, but not returning to a broad lockdown, gives a broad support to the commodities. Further improvement of manufacturing purchasing managers’ index in some countries, including China and Japan, meanwhile, prevent further correction of industrial commodities. 

Read More

MIND ID Outlook

A stress test using data in April and May leads to an estimated year end loss of Rp2 trillion at MIND ID (previously INALUM), a holding company with interest in mining companies producing bauxite, alumina, aluminium (INALUM), nickel (Aneka Tambang, Vale Indonesia), gold, copper (Freeport Indonesia and Aneka Tambang), and tin (Timah).

Read More

The nickel country (7)

Nickel retreated from its recent peak to US$14,365 per ton in London Metal Exchange (LME) yesterday due to broad correction of industrial metals amidst fears of slower global economic recovery due to the spread of coronavirus, including second wave outbreak in Europe. This, however, will not stop Indonesia from leading the world’s nickel industry, including to support the electric vehicle disruption.

Read More

Coal Journal

Indonesia recorded US$1.1 billion of export value from thermal coal last month, dropped by 11.5% from July. In the first eight months of 2020, export revenues from the commodity dropped 22.4% to US$11.74 billion, mainly due to falling average selling price.

Read More

Economic Recovery: Commodities

The benchmark December 2020 contracts of crude palm oil (CPO) settled higher by RM48 to RM2,912 per ton in Bursa Malaysia Derivatives Tuesday (Sept 15). Late last week, the commodity advanced to US$745 per ton (CIF) in Rotterdam, Netherlands. While it’s disappointing to see 9.6% decline in export value for palm oil (and derivatives) last month, the country can expect more in the fourth quarter.

Read More

Merdeka Copper + Tsingshan

Shares of Merdeka Copper Gold (MDKA), a company controlled by Saratoga Group, Provident Group, and Boy Garibaldi Thohir, advanced 2.45% to Rp1,670 on Monday (Sep 14). At this price, Merdeka Copper has market capitalization of Rp36.57 trillion or around US$2.45 billion, pretty high for a company which produced 223,000 ounces of gold last year.

Read More

Biodiesel Development Update

Several civil society organizations reject Joko “Jokowi” Widodo’s biodiesel development plan. The President wanted his administration to ramp up the production of B20, B30, B40, and B100 fuel. But the said organizations believe that such a program won’t benefit oil palm farmers.

Read More

Rokan’s Management Transition

The Head of Agreement (HoA) for the transfer of Rokan Block management from PT Chevron Pacific Indonesia to PT Pertamina may soon be signed. Minister of Energy and Mineral Resources Arifin Tasrif told us on Sep. 9 that the Government was still in an evaluation period. “We will make the announcement. Just wait for the result (of the evaluation),” He said. 

Read More

The nickel country: EV Disruption (6)

Nickel retreated significantly from its recent peak (US$15,660 on Sept 1) to US$14,748 on Thursday (Sept 10) due to grim macroeconomic outlook. Medium-long term prospect of the commodity, where Indonesia is the largest exporter, however, remains strong, thanks to disruption of electric vehicle in the global automotive industry. 

Read More

Mining Giants Welcome Coal Mining RPP

The Ministry of Energy and Mineral Resources (ESDM) is working on a Government Regulation Draft (RPP) on Coal Mining. The RPP is a part of the list of implementing regulations mandated by Law No.3 Year 2020 on Minerals and Coal Mining. The draft we obtained on Sep. 9 contains provisions on minerals and coal mining license, expansion and reduction of concession area, reserves fund, and more. 

Read More

Survival of the fittest: Coal (1)

Unlike other minerals, thermal coal has been subdued longer due to the Covid-19 pandemic. Today the commodity is traded at US$52.8 per ton in international market, only slightly above its recent low (US$50.2/ton), mounting pressures to inefficient coal miners around the globe. It also hurts the State budget because of the commodity’s contribution in the form of corporate income tax and mineral royalties.

Read More
Loading
error: Content is protected !!