Indonesia to ban nickel ore export by May 2012 instead of 2014?
Friday, 24 February 2012 | 00:00
Indonesia may ban the export of Nickel ore much earlier than expected, as per reports appearing in certain websites. Indonesia is the world's second largest producer of nickel.
Russian website Interfax reported that Indonesia may ban the export of Nickel ore by as early as May 2012 instead of in 2014. The topic is hot amongst traders and the miners at the moment, as per an anonymous trader who went on to add that the ban may turn out to be unworkable considering that the country's poor infrastructure will make smelters reluctant to localize their operations.
Metalbulletin.com reported that “Indonesian nickel ore miners who do not export during February 6 and May 6 will be banned from exporting after May 6, according to some market sources. Offer prices for material in Chinese ports have already gone up because of this possibility”
An immediate effect will be felt in China, one of the largest nickel consumers in the world. In fact, Indonesia accounted for nearly 53% of total Chinese imports in 2011. The loss of such a supply could easily strain the physical markets.
No official confirmation has been received with regard to the report.
Source: Commodity Online
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