Nickel market bets the bank on Indonesian ore ban

Posted on February 28, 2014 by Nanthakumar Victor Emmanuel, P.Eng Leave a comment

Feb 28 (Reuters) – Indonesia’s January ban on the export of nickel ore is, according to French nickel producer Eramet, “good news and will eventually support nickel prices”.

Eramet Chairman and Chief Executive Patrick Buffet’s view, expressed in the company’s annual results release, that the ban “is a positive step towards restoring market balance” pretty much sums up the consensus view of the market.

After all, the January halt to flows of nickel ore to China’s giant nickel pig iron (NPI) sector puts at risk an estimated 482,000 tonnes, or around 25 percent of global supply, according to estimates by analysts at Macquarie Bank. (“Indonesian Ore Ban – a Q&A”, Jan. 14, 2014)