Video Transcript
Alexandra Symeonidi
CFA, Corporate Credit Analyst
Emerging Markets Debt Team
In nickel, we’ve seen a vast expansion in production coming from Indonesia after the nickel ore export ban in 2020. Production has doubled in the last four years, to 1.6 million tonnes, representing more than half of global nickel supply. As a result of that steep supply growth, prices were moving lower throughout last year. Several high-cost operations in Australia and New Caledonia have been shut down due to the low-price environment. We believe that further supply rationing, especially from Indonesia, will help ease downside risks on nickel prices. Indonesia announced last week that it might be terminating new permits for low-grade nickel smelting, paving the way for more cautious supply growth.
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