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Nickel in crisis: Indonesian boom meets global bust

2024-02-07 Raw Material News Global
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The once-thriving nickel market faces a challenging reality as a surplus of supply, fueled largely by Indonesia's robust production, collides with sluggish demand.
This has unavoidably led to a sharp decline in prices, leaving industry players grappling for stability and raising concerns about the sector's sustainability.

Nickel prices tumbled below the crucial 16,000 USD/t mark on Tuesday, February 6, 2024, representing a near 50% decline year-over-year and raising concerns about a prolonged downward trajectory in the market.

Indonesia, with its abundant nickel reserves, has emerged as a dominant force, oversaturating the market and driving prices to levels that have pushed half of the industry into financial distress. Indonesia already boasts half of the world's nickel supply, and ongoing investments in efficient processing plants are solidifying its position. The combination of abundant resources, cheap labor, and modern infrastructure makes Indonesia a highly attractive producer, even in a challenging market as of today. Continue Reading? Please click box below!

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