Nickel Prices Soar Amid Political Unrest in New Caledonia
In a surprising turn of events, Indonesia’s benchmark nickel price in May 2024 has risen by 0.27% to US$17,472.38 per dry metric ton (dmt). This increase marks a significant improvement from the previous month, with the price jumping by US$47.86 per dmt compared to April.
This surge not only breaks the downward trend that has been plaguing the nickel market since June 2023 but also signals a positive outlook for the industry. However, despite this increase, the benchmark nickel price in May 2024 still remains lower than the peak reached in December 2023, which stood at US$17,653.33 per dmt.
The Minister of Energy and Mineral Resources recently issued a decree establishing the reference metal mineral prices for May 2024, setting nickel at US$17,472.38 per dmt. Additionally, cobalt was fixed at US$28,215.95 per dmt, providing clarity for investors and stakeholders in the industry.
The spike in nickel prices can be attributed to the recent political unrest in New Caledonia, a major global producer of nickel. The country, responsible for around 6% of the world’s nickel production, has been facing turmoil that has significantly impacted global nickel prices.
The future of nickel prices remains uncertain, with fluctuations expected depending on the resolution of the issues in New Caledonia and the demand for environmentally friendly energy sources. Analysts predict that ongoing problems in the region could continue to drive nickel prices up, while factors such as supply from Indonesia and demand for electric vehicles could also influence the market.
As the nickel market continues to evolve, investors and industry experts are closely monitoring the situation in New Caledonia and other key factors that could impact nickel prices in the coming months. Stay updated with the latest news on nickel prices and other industry trends by following us on Google News and our WhatsApp channel.
