Nickel Journal
Nickel ended at US$23,235 per ton in London Metal Exchange (LME) Friday, Feb 11. Impressive sales growth of electric vehicle and Indonesian government’s plan to implement export tax on nickel pig iron (NPI) this year will continue to support the commodity.
Nickel Export Tax Policy Progress
The Indonesian Government is reviewing export tax levies for several nickel products, i.e., nickel pig iron and ferronickel. The details of the arrangement have not been announced. The Ministry of Energy and Mineral Resources, the Coordinating Ministry of Maritime Affairs, the Ministry of Trade, the Ministry of Investment, and the Ministry of Finance are still ironing out the details, said Director General of Mineral and Coal, Ridwan Djamaludin this morning (Feb. 2)
DMO Policy on Palm
Malaysian palm oil futures fell to MYR5500 per ton but remained close to an all-time high of MYR 5700 per ton, boosted by mounting concerns over supply and following a rise in other vegetable oils and crude oil prices.
Steel Update
Shanghai steel futures broke the CNY 5000 per ton mark before getting back to the CNY 4800 per ton level, but remaining the highest since late October, amid limited supply, rising iron ore and nickel prices, and prospects of a boom in demand.
Coal Journal
Coal prices fell more than 5% to US$210 a ton to start February after Indonesia lifted a ban on coal exports, citing improving conditions of coal supply for local power plants.
Palm Journal
Palm oil increased to an all-time high of MYR5521 per ton on Friday last week (Jan. 28), on concerns oversupply and following a rise in other vegetable oils and crude oil prices.
Quintessentially Nickel: Southeast Sulawesi
Southeast Sulawesi recorded export revenues of US$3.87 billion last year, only 1.85% of national total but expanded significantly from US$2.4 billion (1.47%) in 2020. Given massive investment in nickel processing industry, including stainless steel, export revenues from the province would continue to grow in the coming years.
Quintessentially Nickel: Central Sulawesi
Central Sulawesi is a fast growing export base for Indonesia, thanks to massive investments in nickel processing industry, including stainless steel. Last year, the province generated US$10.9 billion of export revenues, jumped from US$7.5 billion in 2020. Nickel pig iron (NPI) and stainless steel dominated the export, but more higher value nickel products will enter the world market this year.
Quintessentially Nickel: North Maluku
North Maluku was among the poorest provinces in Indonesia. Last year, however, the province recorded US$3.51 billion of export revenues, skyrocketed from US$1.04 billion only in 2020. The province’s export revenues will easily triple in three years time to make it one of the largest export bases in Indonesia, thanks to massive investments in nickel pig iron (NPI), ferronickel, nickel in matte, and nickel-cobalt sulphate.
Walk the Talk: Coal-to-DME
President Joko ‘Jokowi’ Widodo has on Monday (Jan 24) kicked off physical construction of Indonesia’s first coal-to-dimethyl ether (DME) project, which is labelled by Institute of Energy Economics and Financial Analysis (IEEFA) ‘Does Not Make Economic Sense’. According to an article written by IEEFA’s energy analyst Ghee Peh, the project will report annual losses of US$377 million. Jokowi, on the other hand, wants more DME projects to curb the country’s import of liquefied petroleum gas (LPG), which is more than US$5 billion per annum.