Don’t Count on Indonesia to Repeal Export Ban

Posted on May 13, 2014 by Nanthakumar Victor Emmanuel, P.Eng Leave a comment

Indonesia’s export ban on nickel is here to stay, analysts at Citi say.

Nickel prices are up more than 50% this year, thanks to Indonesia’s decision to stop exports of the ore mined on its islands, which threatens to send the market into deficit by the second half of the year. Prices for the metal rose 6% on Monday alone, to close at $20,925 a ton on the London Metal Exchange, as investors worry about tightening supplies.

All three parties in the country’s election have said they won’t repeal the law if they win, Citi analysts wrote in a note to investors.