Will Indonesia's New President Continue Nickel Policy, Which Undercuts Competitors?
Portfolio Pulse from Matt Whittaker
Indonesia, under its new president Prabowo Subianto, is expected to continue its dominant nickel production policies, impacting global nickel prices and competitors. The country's approach has led to a price slump, affecting financing and operations of nickel projects worldwide, including those by Horizonte Minerals Plc, BHP Group Ltd., and Glencore. Indonesia's strategy of adding value domestically and attracting investments for an electric vehicle battery supply chain is likely to keep global markets flooded with cheap nickel.
April 24, 2024 | 5:25 pm
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BHP Group Ltd. is among the multinational companies that have decided to mothball nickel operations due to the challenging market conditions created by Indonesia's nickel policies.
The decision by BHP Group to mothball nickel operations is a direct consequence of the unfavorable market conditions stemming from Indonesia's aggressive nickel production and pricing strategy, suggesting a negative short-term impact.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Glencore has also announced the mothballing of nickel operations, reflecting the broader impact of Indonesia's nickel market strategy on global competitors.
Glencore's decision to mothball nickel operations is influenced by the same market pressures as BHP, driven by Indonesia's nickel production policies, indicating a negative short-term impact on GLNCY.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Horizonte Minerals Plc faces challenges in financing a nickel project in Brazil due to the unfavorable nickel market environment influenced by Indonesia's policies.
Indonesia's competitive nickel pricing and market dominance have directly impacted Horizonte Minerals' ability to secure financing for its nickel project, indicating a negative short-term impact on HZMMF.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 80