Indonesia Shuts the Door on New Class II Nickel Smelters - Supply Squeeze Coming?

Recording date: 1st November 2023Nickel prices bounced off the $17,500-$18,000 range as expected, with inventories continuing to gradually increase. The "great convergence" continues as the premium between nickel sulphate and NPI has narrowed.Fastmarkets launched new price indexes for nickel pig iron (NPI) and mixed hydroxide precipitate (MHP) exports from Indonesia to bring more transparency to battery raw material markets.Indonesia is re-confirming the ban on new class II nickel smelters to maintain balance between nickel ore supply and demand. Mining quotas will likely be used to manage supply.Company News:Canada Nickel released a feasibility study for its project. Alaska Energy released more drill results for its bulk tonnage nickel project and plans to release an inferred resource in 2023.Rio Tinto signed an agreement to earn up to 80% of a nickel project from Sultan Resources by spending $2m on exploration.Alliance Nickel delayed its feasibility study for its nickel leach project in Australia to mid-2024 due to higher than expected costs. Australian nickel leach projects have historically struggled, so new projects will need cautious evaluation.Learn more: https://cruxinvestor.com/commodities/nickelSign up for Crux Investor: https://cruxinvestor.com