Category: Commodities

Thermal coal advanced further to a record high of US$240 per ton in the global market Monday (Oct 4), lifted mainly by news about desperation of Chinese coal-fired power plants to get supply from other countries. A renewed demand from Indian buyers, meanwhile, continues to support crude palm oil (CPO), which reached US$1,310 per ton (CIF Rotterdam) late last week. 

Shares of Aneka Tambang (ANTM) improved 0.87% in the morning session Tuesday (Sept 28) as the company reported net profit of Rp1.16 trillion in the first half ended June 30, 2021 against net loss of Rp159 billion in the corresponding period last year.

Nickel hovers around US$20,000 per ton in London Metal Exchange (LME) as electric vehicles continues to make inroads in Europe and China. Strong growth in the batteries sector, which outpaced the main end-market stainless steel, supported the commodity in the first half, and will likely to continue in the second half onwards.

Aneka Tambang (ANTM) shares rallied from Rp825 a year ago to as high as Rp3,440 in January, but has since retreated to Rp2,350 on Tuesday (Sept 7). Still, at the last quoted price, ANTM was worth Rp56.47 trillion, higher than the more profitable nickel producer Vale Indonesia (INCO, at Rp49.9 trillion). 

PT Salim Ivomas Pratama Tbk (SIMP), plantation arm of Salim Group, booked net profit of Rp353 billion in the first half 2021 against net loss of Rp378 billion in the corresponding period last year, thanks to higher average prices of palm products. The company’s sales revenues grew 30% despite slightly lower sales volume of crude palm oil (CPO). 

Sulawesi, Maluku and Papua are regions with highest economic growth in the country for the first half of 2021. Maluku and Papua grew 8.86%, while Sulawesi increased by 4.84%, significantly stronger than Java Island (+3.31%), Sumatra (+2.15%), and Kalimantan (+1.9%). 

Nickel ended at US$17,701 per ton in London Metal Exchange (LME) Tuesday (June 22). While way below its peak this year, the commodity remains in a profitable range for most Indonesian smelters, where some reported cash cost around US$8,000 per ton. Strong sales performance of electric vehicle, particularly in Europe, continues to support nickel, main precursor of EV battery.

Nickel closed higher at US$18,142 per ton in London Metal Exchange (LME) Tuesday (May 18), thanks among others to positive development in the global electric vehicle market. Copper and tin, two other important metals for EV battery, were also strong at US$10,465 and US$32,261 per ton. 

Papua is among few provinces with positive economic growth last year, thanks to recovery of PT Freeport Indonesia’s gold and copper operations. Papua grew 2.32%, whilst lower than North Maluku (+4.92%) and Central Sulawesi (+4.86%), home to the country’s nickel smelters and steel investments.