Recently, Indonesia Ministry of Energy and Mining announced February nickel domestic trade benchmark price (MC 35%), among which:
NI1.6%FOB 50.29 USD/wet ton, up by 1.70 USD month-on-month and 12.96 USD year-on-year;
NI1.7%FOB 56.58 USD/wet ton, up by 1.91 USD month-on-month and 14.58 USD year-on-year;
NI1.8%FOB 63.23 USD/wet ton, up by 2.14 USD month-on-month and 16.30 USD year-on-year;
NI1.9%FOB 70.26 USD/wet ton, up by 2.38 USD month-on-month and 18.11 USD year-on-year;
NI2.0% FOB $77.65 / wet ton, up $2.63 from the previous month and $20.01 from the previous year.
The Indonesian government determines nickel HMA and HPM based on average nickel price movements on the London Metal Exchange (LME). Therefore, influenced by the high rise of nickel price in LME, the benchmark price of Indonesian domestic trade continued to rise in the past two months. The Indonesian government requires that all mineral transactions between smelters and mines must be based on FOB prices. There are also discussions on the pricing of nickel ore needed for low-grade hydrometallurgy, including nickel and cobalt, which is expected to increase the cost of local production.
