in the raw materials market there is another rally: nickel
A fter the announcement by Indonesia to stop the exportation of nickel, the world is racing to find an alternative to this fundamental raw material – the prime ingredient in a world that is quickly transforming. Indonesia’s nickel miners made a surprise move when they agreed at the end of October to stop nickel, a strategic commodity, ore exports since Jakarta last month brought forward a ban on shipments to January 2020 instead of 2022, as announced by the country’s investment agency chief Bahlil Lahadalia. This will heavily influence financial investment in raw material – making it an interesting commodity to follow in the upcoming months.
M ore than 2.3 million tonnes (t) of nickel per year are mined worldwide, with Indonesia (560,000 t), The Philippines (340,000 t), Russia (210,000 t), New Caledonia (210,000 t), Australia (170,000 t) and Canada (160,000 t) being the largest producers as of 2019. Nickel is primarily sold for first use as refined metal (cathode, powder, briquet, etc.) or ferronickel. About 65% of the nickel consumed in the Western World is used to make austenitic stainless steel. Another 12% goes into superalloys (e.g., Inconel 600) or nonferrous alloys (e.g., cupronickel). cited in USGS.gov
Alessandro Argento, an expert on raw materials and currencies for goldencross.io, explains:
The Philippines could be a viable alternative to Indonesia” continuing “they could have the great opportunity to increase production despite environmental problems