Bloomberg reported that increasing concern that Indonesia will “play hardball” with its ban on unprocessed ore exports has pushed London nickel prices to their highest level in two weeks.
As quoted in the market news:
Indonesia will be consistent in applying the rule, which went into effect last month, even if it means some mining companies shut down operations, Deputy Energy and Mineral Resources Minister Susilo Siswoutomo said Feb. 6. The ban may help the market rebound after prices slumped 19 percent in 2013, Bloomberg Industries said in a report.
‘The feeling is that the Indonesian government is really going to play hardball with this ban,’ Edward Meir, an analyst at INTL FCStone Inc. in New York, said in a telephone interview. ‘There’s no sign they’re going to relax it or modify it, so I think prices are starting to reflect that.’