SINGAPORE- Nickel prices in Shanghai hit a record high on Monday, while they jumped to a five-year high in London, after top producer Indonesia said it would restrict ore exports from 2020.
The benchmark three-month contract was up 3.2 percent at $18,470 a ton, its highest since September 2014, while Shanghai nickel surged to its maximum daily limit of 6 percent to a record 136,960 yuan ($19,309.72) a ton.
Indonesia, the world’s biggest supplier of nickel ore, on Friday announced that it would expedite a ban on mineral ore exports by two years from an original schedule of 2022.
“The country is a key supplier to the Chinese nickel pig iron industry. However, it’s keen to retain more value in the country, with one eye on the burgeoning battery sector. This latest move is likely to significantly tighten up the market,” said ANZ in a note. – Reuters