Category: Commodities

Nickel has been under pressure in the past few months to fall below US$20,000 per ton, losing 14% year-on-year, but Indonesia recorded an impressive growth in export value of nickel derivatives (mainly nickel pig iron/NPI, nickel in matte, and recently nickel in mixed hydroxide precipitate/MHP).

Indonesia recorded oil and gas deficit of US$10.7 billion in the first seven months of 2023. While it was substantially smaller than US$14.7 billion deficit reported in the corresponding period of 2022, the country needs to speed up development of new projects. Else the deficit will grow bigger, especially if electric vehicle (EV) market failed to expand. 

PT Pertamina International EP (PIEP), subsidiary of state oil and gas company Pertamina, has on Wednesday (Aug 23) signed a non-binding MoU with Buzi Hydrocarbons Pte Ltd (BHPL), an indirect subsidiary of Bakrie Group’s Energi Mega Persada (ENRG) to develop the Buzi block in Mozambique.

Energy and mineral resources ministry will stop development of new nickel smelters using rotary kiln electric furnace (RKEF) technology, which produces second class nickel pig iron (NPI) and ferronickel. Those using high pressure acid leaching (HPAL) technology, however, may proceed.

The government through the Ministry of Energy and Mineral Resources (ESDM) has set a reference coal price (HBA) for the August 2023 period. HBA with a calorie intake 6,322 kcal/kg GAR, total moisture 12.26%, sulfur 0.66%, and ash 7.94% is priced at US$179.90 per ton, lower than July 2023’s US$191.60, following correction in international market.

Indonesia’s nickel processing into stainless steel and EV battery materials is heavily dominated by China investments through companies like Tsingshan, Jinchuan, Huayou Cobalt, Lygend Resource & Technology, CNGR, GEM, and CATL. The country, however, needs to diversify source of investments in order to mitigate international trade risks from IRA in US and similar policies in Europe.

Heavy equipment producer, mining contractor, and diversified mining and energy company United Tractors (UNTR), through its subsidiary PT Energia Prima Nusantara (EPN) has on August 7, 2023 acquired 40.47% shares in PT Supreme Energy Sriwijaya (SES) for US$42.32 million, equivalent to Rp634.94 billion. UNTR has earlier acquired nickel assets as part of Astra Group’s efforts to participate in the EV ecosystem. 

Newcastle coal futures traded near a 2-year low of US$130 per ton, driven by concerns of oversupply from India and Indonesia, despite rising demand from China, tradingeconomics.com reported. In June, China’s daily coal production rebounded to an average of 13 million metric tons, up from a 6-month low of 12.43 million metric tons in May, as a heatwave boosted coal consumption for electricity generation. 

Pretty much as predicted, most plantation firms reported lower earnings in the first half (H1) of 2023, due to the correction of crude palm oil (CPO) price in the second quarter (Q2) of this year. CPO price slumped in Q2 to its lowest point since November 2020 due to higher output and a decline in the prices of rival vegetable oils amid concerns over the possibility of a global economic recession and an expected production increase in rival vegetable oils, such as soybean oil.

Prabowo Subianto (minister of defense) and Retno Marsudi (minister of foreign affairs) were seen in a meeting with President of France Emmanuel Macron late last week. They met counterparts Sebastien Lecornu (minister of defense) and Catherine Colonna (foreign and European affairs minister). 

Indonesian shrimp farming industry gains traction in recent years with more investments, including foreign, flowing into the sector. Still, it is too small to reach national output target of 2 million tons per annum by 2024.

Nickel industry continues to attract investments. In the past few months, we’ve seen more signings of partnerships, joint ventures, participations of fund management companies in the sector.