Category: Commodities

Shares of nickel miners were mostly under pressure Thursday (Jul 25) due to downfall of nickel prices related to persistent oversupply concern among market participants. The commodity was traded at US$15,817 per ton, down 7.26% from last month and lost nearly 26% from a year ago. In the first half of 2024, demand for primary nickel was helped by stainless steel, while EV batteries provided little incentives.

Shares of Aneka Tambang (ANTM), a state company involved in gold, bauxite, and nickel mining, ended slightly lower at Rp1,310 on Wednesday (Jul 25) to make a market capitalisation of Rp31.5 trillion, on par with equity (Rp31.4 trillion). The company, which has been rocked by various scandals and corruption cases, was worth way below Harita Nickel (Rp57.1 trillion) despite the fact that it has long sit over huge nickel resources. 

Pretty much like the previous booms of investments (coal, palm oil, and nickel), everbody (major business groups) seems to have renewable energy portfolio. As discussed in the previous article (The Thohirs & Prabowo), Hashim Djojohadikusumo (brother of president elect Prabowo Subianto) has just decided to join a giant hydropower project in North Kalimantan province.

Shares of Barito Renewables (BREN) eroded 8.53% to Rp7,777 on Wednesday (July 18) to make a market capitalization of Rp1,040 trillion. Still overtly overvalued because Pertamina Geothermal (PGEO), which has almost similar size, was only Rp52 trillion or 1/20 of BREN.

Gold, by far, is among the best mining commodities thanks to global economic uncertainties. Gold has gained 24% year-on-year, which could benefit Indonesian goldminers and revive investments in exploration activities. Delay in approval for work and budget plan (RKAB) of mining companies and the issuance of export permits, unfortunately, might lead to lower sales volume than expected.

Copper, leading indicator of the economy, ended slightly lower by 0.3% to US$9,875 per ton on the London Metal Exchange (LME) Wednesday (Jul 10). The commodity has retreated 9.3% from its all-time high in mid May, but still gaining 19.3% year-on-year thanks to expectation of higher demand from renewable energy and artificial intelligence (AI) industries.

Shares of Harum Energy (HRUM), a coal producer expanding aggressively into nickel business in the past five years, ended slightly lower by 0.41% to Rp1,220 on Wednesday (Jul 10) to make a market capitalisation of Rp16.5 trillion, way below equity (Rp21.7 trillion by March 31, 2024).

Tradingeconomics.com reported WTI crude futures fell by 0.8% to close at $83.16 per barrel on Friday last week (July 5), as the growing likelihood of a Gaza ceasefire overshadowed robust summer fuel demand and potential supply disruptions from hurricanes in the Gulf of Mexico. 

Malaysian palm oil futures increased 5.69% year on year (y/y), trading at MYR4104 per ton on Wednesday (July 3), while concerns over weak exports grew, particularly after cargo surveyors’ data surveyor Intertek Testing Services and AmSpec Agri reported shipments of Malaysian palm oil products for June declined between 11.8% to 15.4% from the prior month, Tradingeconomics.com reported. 

Carbon Capture and Storage (CCS) will be crucial in assisting society to achieve net-zero emissions, providing a means to reduce emissions from sectors that are challenging to decarbonize. Consequently, the availability of storage is an important factor for the successful deployment of CCS and Carbon Capture Utilization and Storage (CCUS) projects.  Study was carried out to finalize one of the technologies supporting decarbonization. Indonesia has the ambition to become a CCS Hub in the Southeast Asia region.