China’s nickel ore prices may rise more than 50% on Indonesian export ban: Macquarie

Posted on January 15, 2014 by Nanthakumar Victor Emmanuel, P.Eng Leave a comment

The price of imported nickel ore in China could jump more than 50%, following Indonesia’s export ban on the product which took effect January 12, Macquarie Commodities Research said in a report Tuesday.

Nickel ore stocks in China are partly held by trading companies, which are likely to immediately mark up ore prices, Macquarie said, adding that CFR China nickel ore prices are currently around $45-50/mt.

“We would not rule out a potential [more than] 50% rise in ore prices …,” it said, adding that the breakeven price to produce nickel pig iron by rotary kiln/electric furnace would increase from $12,000/mt to more than $15,000/mt.