London Metals Exchange saw a 0.6% drop in three-month futures to $17,060 per tonne, while Shanghai Futures Exchange reported a 1.5% decrease to 132,430 yuan ($18.406) per tonne for March futures. Last week, nickel prices were buoyed by US sanctions on Russian exports, but these measures did not affect metal exports, including nickel. The Ministry of Energy and Mineral Resources of the Republic of Indonesia approved mining shares representing 145 million tonnes of nickel and other metals.
Meanwhile, delays in issuing new mining quotas in Indonesia have tightened nickel ore supply, prompting smelters to reduce production. This delay, attributed to factors like the country's presidential election and changes in permit validity, has led to a 14% rise in nickel ore prices to approximately $36 per metric ton. Indonesian smelters have significantly lowered production due to supply tensions, with some reducing operations by up to 50%. As a result, nickel pig iron prices in Indonesia have surged to a near three-month peak.
Despite efforts to address the delays in issuing production quotas, concerns about supply constraints persist, impacting nickel prices and potentially affecting industries reliant on nickel, such as stainless steel and electric vehicle battery components.
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