Demand For Nickel Ore May Remain High
If Indonesia maintains its nickel export ban, the demand for Philippine nickel ore in China will remain high.
According to Chamber of Mines of the Philippines (COMP) Vice-President for Communications Rocky G. Dimaculangan, “As long as Indonesia keeps its nickel export ban, demand for Philippine nickel ore from China’s NPI (nickel pig iron) plants will remain strong.”
Last year, Indonesia banned nickel ore exports to develop a domestic-processing industry. This would allow the country to capture more added value from ore - instead of exporting the ore to be processed in China.
Since April 2020, S&P Global Market Intelligence said that China had grown more dependent on the Philippines to supply nickel in the absence of Indonesia.
Dimaculangan said that the main driver of the cost of nickel will be electric vehicles. He said, “Given the growing demand for nickel from the electric vehicle market, LME nickel prices (are) expected to remain strong.”
COMP said that it expects the prices of gold to “remain close to or even above 2020 levels”.
He added, “We anticipate central banks and governments to sustain their high monetary and deficit-spending stimulus programs even as economies slowly recover from the COVID pandemic following the worldwide vaccinations.”